TMI Blog2022 (8) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial documents have been prepared in the normal course of business and submitted under the Companies Act. Appeal dismissed. - Company Appeal (AT) (Insolvency) No. 992 of 2022 - - - Dated:- 23-8-2022 - [ Justice Ashok Bhushan ] Chairperson , [ Justice M. Satyanarayana Murthy ] Member ( Judicial ) And [ Mr. Barun Mitra ] Member ( Technical ) For the Appellant : Mr. A. Prasad , Sr. Advocate with Mr. Rivesh Agrawal , Mr. Teejas Bhatia , Advocates ORDER Heard Learned Sr. Counsel for the Appellant. 2. This Appeal has been filed against the Order dated 22nd June, 2022 passed by the Adjudicating Authority. By which Order, the Application under Section 7 filed by the UCO Bank-the Respondent herein has been admitted. 3. The UCO Bank has sanctioned financial credit facilities to the Corporate Debtor on different dates. The UCO Bank declared the Corporate Debtor as Non-Performing Assets on 30.09.2012 and thereafter Notices were issued under Section 13(2) of the SARFAESI Act, 2002. The Corporate Debtor has taken steps to challenge the proceedings before the DRT, the UCO Bank filed an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 on 28th Mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as acknowledged the debt in the balance sheets of Financial Years 2012-13, 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19. .. 7. Learned Counsel for the Appellant has referred to the Judgement of the Hon ble Supreme Court in Asset Reconstruction Company (India) Ltd. Vs. Bishal Jaiswal Anr. paragraph 21 and 35 which are to the following effect: 21. Importantly, this judgment in Bengal Silk Mills holds that though the filing of a balance sheet is by compulsion of law, the acknowledgement of a debt is not necessarily so. In fact, it is not uncommon to have an entry in a balance sheet with notes annexed to or forming part of such balance sheet, or in the auditor s report, which must be read along with the balance sheet, indicating that such entry would not amount to an acknowledgement of debt for reasons given in the said note. .. 35. A perusal of the aforesaid Sections would show that there is no doubt that the filing of a balance sheet in accordance with the provisions of the Companies Act is mandatory, any transgression of the same being punishable by law. However, what is of importance is that notes that are annexed to or forming part of such financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UCO Bank Term Loan 2 34813900 10879344 23934556 UCO Bank CC Account 17809766 17809766 10. Learned Counsel for the Appellant has referred to the notes of Auditor in the Report on the Financial Statement. He has referred to paragraph 1 which is to the following effect: 1. Refer to Note No. 2.25, which states that During the current year as well as from the financial year 2012-13, the Company has not provided any interest on the following back accounts, as the bank has declared the account as NPA. i. Term Loan 1 ii. Term Loan 2 iii. U.CO. Bank CC Account iv. External Commercial Borrowings Instalment of Term Loans from UCO Bank, which was to begin from December 2011, but not a single instalment has been repaid during the year. Also repayment of External Commercial Borrowing has not been done. The quantification of interest payable has not been done in absence of bank confirmation. Any information on subsequent movements on the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2009 till March 2012 and further claim the amount as and when it is known. The company had made a claim of Rs. 130 lacs in the year 2010 and the bank had accepted erroneous application of excess interest and charges but refunded only 18.39 lacs and the rest was regretfully disallowed as it was already treated as their income. The company now claims the rest of the money amounting to Rs. 111.61 lacs from the bank. The Company received another sanction in June 2010 wherein the bank approved of the additional cost of the project to Rs. 718 Lacs which was to be funded by Rs. 557 lacs via ECB, a release of the company s FDR of Rs. 100 Lacs, as this Rs. 100 Lacs was to be invested in the project and a further project margin contribution of Rs. 62 lacs. The company received the sanction letter on 16/06/2010/ This FDR of Rs. 100 lacs was not released and the company was forced to bring in excess capital to the tune of Rs. 166 lacs instead of Rs. 62 lacs. Thereafter the 100 lacs of FDR should have been released, but was not released. After completion of the project and achieving the COD, the Company submitted a proposal for enhancement of working capital limits on 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
