Setubandhan Infrastructure : CIRP - others

IN THE NATIONAL COMPANY LAW TRIBUNAL,

COURT-V, MUMBAI BENCH

C.P. No. 106/IBC/MB/2022

Under Section 7 of the Insolvency and

Bankruptcy Code, 2016 read with Rule 4 of the

Insolvency and Bankruptcy (Application to

Adjudication Authority) Rule 2016)

In the matter of

State Bank of India,

Stressed Asset Branch II

Raheja Chambers, Ground Floor,

"B" Wing, Free Press Journal Marg,

Nariman Point, Mumbai- 400 021.

……Financial Creditor/Petitioner

Vs

M/s. Setubandhan Infrastructure Limited (formerly Known as Prakash Constrowell Ltd)

Registered office at:

The Exchange, Near Ved Mandir, Tidke Colony,

Trimbak Road, Nashik, MH- 422002 IN

..…..Corporate Debtor/ Respondent

Order Reserved on: 14.11.2022

Order Pronounced on: 28.11.2022

Coram:

Hon'ble Shri H.V. Subba Rao, Member (Judicial)

Hon'ble Smt. Anuradha Sanjay Bhatia, Member (Technical)

Appearances (Via Video Conference):

For the Petitioner: Ms. Rathina Maravarman, Advocate

For the Respondent: Mr. Ashwin Poojari, Advocate

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C.P. No. 106/IBC/MB/2022

Per: H.V. Subba Rao, Member (Judicial)

ORDER

1. The Petitioners/Applicant viz. 'State Bank of India'. (hereinafter as
   Petitioner) has sought the Corporate Insolvency Resolution Process (hereinafter called 'CIRP') of 'M/s. Setubandhan Infrastructure Limited' (formerly Known as Prakash Constrowell Ltd) (hereinafter as 'Corporate Debtor') on the ground, that the Corporate Debtor committed default in repayment of facilities granted to the Corporate Debtor to the extent of Rs. 95,60,36,160.13/- along with interest, the date of default is stated to be 05.04.2019, under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereafter called the 'Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
2. The Petition reveals that the Corporate Debtor availed certain credit facilities from the Petitioner Bank and the same were sanctioned and granted to the Corporate Debtor. The cash credit facilities were renewed on various dates (a) 20.03.2013; (b) 26.04.2014; (c) 10.12.2014; (d) 02.07.2016; (e) 23.09.2016; (f) 28.03.2017; (g) 21.01.2019. The Original sanction was given on 20.03.2013 and further loan was last renewed on 02.01.2019. The details of the same are as follows:

Loan A/c No.	Date of Loan		Loan Amount		Principal o/s as
							on
32899386345			35,00,00,000.00		66,09,83,638.45
(Cash Credit)
		20/03/2013
32943850277		40,00,00,000.00		9,35,28,942.00
(Bank
Guarantee)
FACILITY		PRNCIPLE O/S	TOTAL INTEREST	TOTAL DUES
CC		66,09,83,638.45	20,15,23,579.68	86,25,07,218.13
BG		9,35,28,942.00	0.00	9,35,28,942.00

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C.P. No. 106/IBC/MB/2022

Total	75,45,12,580.45	20,15,23,579.68	95,60,36,160.13

1. The Petitioner enclosed the following security documents respect of sanctioning the loan facilities to the Corporate Debtor:
2. 1. A copy of Letter of Arrangement (Sanction Letter) dated
      20.03.2013; 26.04.2014; 10.12.2014; 02.07.2016; 23.09.2016; 28.03.2017;
   2. A copy of Agreement of Loan Cum Hypothecation dated 21.03.2013;
   3. A copy of Guarantee Agreement dated 21.03.2013;
      12.12.2014; 02.07.2016; 04.07.2016; 23.09.2016; 28.03.2017
   4. A copy of Omnibus Counter Guarantee dated 21.03.2013; 23.09.2016;
   5. A copy of Letter of Confirmation for Creation of Mortgage by Deposit of Title Deeds dated 05.06.2013;
   6. A copy of Non-Encumbrance Certificate dated 26.02.2014;
   7. A copy of Supplemental Agreement of Loan-Cum- Hypothecation dated 12.12.2014 and 28.03.2017;
3. The Corporate Debtor have also executed Revival Letter dated 21.06.2017. However, the account of the Corporate Debtor became NPA on 03.07.2019.
4. The Petitioner has enclosed notice under Section 13(2) of SARFAESI Act, 2002 dated 05.07.2019 demanding a sum of Rs. 87,56,32,615/- with interest and incidental expenses, costs which shows that the Corporate Debtor defaulted in repaying the credit facilities availed by them. The Petitioner also enclosed the Legal Notice dated 07.11.2019 requiring the Corporate Debtor to pay a sum of Rs. 70,92,19,433.67/- comprising of Principal and Interest upto 07.11.2019. The Petitioner has also annexed the Certificate under Section 2A(a) of Banker's Books Evidence Act, 1891.

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C.P. No. 106/IBC/MB/2022

6. The Corporate Debtor filed the affidavit in reply of Mr. Prakash Pusaram Laddha opposing the above Company Petitioner on the following grounds:

1. 1. The Form 1 is incomplete and unreliable.
   2. Copy of the present Petition not served upon the IBBI.
   3. Statement of account annexed to the present petition is false, incorrect and misleading.
   4. No proof of disbursement of alleged debt and/or default in payment thereof.
2. Heard the arguments of Ms. Rathina Maravarman, Advocate appearing for the Petitioner and Mr. Ashwin Poojari, Advocate appearing for the Corporate Debtor and perused the record.
3. The Learned Counsel appearing for the Petitioner invited the attention of this Bench to the various loan documents including Sanction letters executed by the Corporate Debtor from time to time. The Petitioner further invited the attention of this Bench to the charges Registered with the MCA against the properties of the Corporate Debtor.
4. The Petitioner also invited the attention of this Bench to the Revival letter dated 21.06.2017 executed by the Corporate Debtor reviving the outstanding dues. The Petitioner also invited the attention of this Bench to the Demand Notice dated 05.07.2019 issued under SARFAESI Act, 2002 to the Corporate Debtor. The Petitioner also invited the attention of this Bench to the Balance sheet and Annual Report of the Corporate Debtor for the Financial Years 2017-18,2018-19,2019-20 under which the amount due to the Petitioner is shown as advance under the heading liabilities. The Petitioner also invited the attention of this Bench to the NESL Report dated

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