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TMI Blog2019 (10) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... ") for initiation of Corporate Insolvency Resolution Process ("CIRP") on the ground that M/s. Cauvery Power Generation Private Limited (hereinafter called as "Corporate Debtor") has defaulted in repaying the loan amount of 13,71,05,776.34/- fallen overdue as on 31.12.2018. 2. In continuation of the default, the Financial Creditor had initiated proceedings under Section 13(2) of the SARFAESI Act for the recovery of the said balance which did not result in recovery of the debt. As a result, the Financial Creditor initiated Corporate Insolvency Resolution Process under Section 7 of the IBC, 2016, r/w Rule 4 of Insolvency and Bankruptcy (Application to Adjudicating Authority Rules), 2016. 3. The Counsel for the Corporate Debtor initially repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the course of action and in terms of the sanction letter, the Corporate Debtor Company had offered various securities both Primary and Collateral as well as Personal and Corporate Guarantees to secure the repayment of loan amount. 6. The Counsel for the Financial Creditor has submitted that in consideration of the aforesaid grant of credit facilities by the Financial Creditor and SBI associate banks, the Board of Directors, Corporate Debtor and the Corporate Guarantor had duly passed Board Resolutions 011 22/02/2010 in pursuance of which the Corporate Debtor and guarantors had executed various loan security documents in favor of the Financial Creditors on 15/03/2010. It has been further submitted that the Financial Creditor had duly r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Creditor was constrained to initiate SARFAESI action by causing demand notice under Section 13(2) of the SARFAESI Act to the Corporate Debtor and guarantors, which evoked no response. Hence, the Financial Creditor is left with no other option except to approach this Tribunal by way of filing the application for initiating CIRP process. 11. The Counsel for Financial Creditor has further submitted that the debt owed by the Corporate Debtor has fallen overdue and the Corporate Debtor has become unable to pay a sum of 13,71,05,776.34/- as on 31/12/2018 towards the Term Loan facility availed from the Bank. The statement of accounts and certificate issued under Banker's Books Evidence Act were filed along with the application, forming part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and Reconstruction of Financial Assets and Enforcement of Security, Interest Act, 2002; d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. II. That Supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. III. That the provisions of sub-section (1) of Section 14 of IBC shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. IV. That the order of moratorium shall have effect from 18.10.2019 till the completion of the Corporate Insolvency Resolution Process or until this Bench a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} table.MsoTableGrid {mso-style-name:"Table Grid"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-priority:59; mso-style-unhide:no; border:solid windowtext 1.0pt; mso-border-alt:solid windowtext .5pt; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-border-insideh:.5pt solid windowtext; mso-border-insidev:.5pt solid windowtext; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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