STATE BANK OF INDIA Vs. GARG INOX LTD

JUDGEMENT

(1.) This petition has been filed by the State Bank of India under Section 7 of the Insolvency Bankruptcy Code, 2016 (hereinafter referred to as Code) . As per averments, the petitioner, a Financial Creditor, seeks to trigger Insolvency Process against the respondent Corporate Debtor which is in huge default of repayment of their loans.

(2.) The Corporate Debtor has been enjoying various credit facilities from the Petitioner Bank, the Financial Creditor, to facilitate its business of steel. The loans have also been restructured from time to time to enable the Corporate Debtor regularize the accounts and tide over the financial exigencies. The loans were last restructured and credit limits extended in the year 2016 on fresh documents being executed. The statements of the outstanding liability in various accounts have been furnished along with the details of the Directors, co-obligants/ guarantors / mortgages etc.

(3.) Ld. Counsel for the Financial Creditor has submitted that though action under SARFAESI has been initiated, it is felt that it would be best, both in the interest of Financial Creditor as well as the Corporate Debtor, to resort to a Resolution process for a possible turnaround of the Corporate Debtor, more so as the guarantees and mortgages offered are not sufficient to meet the outstanding debt.