STANDARD CHARTERED BANK Vs. RUCHI SOYA INDUSTRIES LTD

JUDGEMENT

(1.) It's a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by the Financial Creditor namely, Standard Chartered Bank against the Corporate Debtor namely, Ruchi Soya Industries Ltd. to initiate Corporate Resolution Process on the ground that this Corporate Debtor defaulted in making repayment of USD 5,358,742.84 as on 31.8.2017 and Rs. 334,14,19,044 as on 31.8.2017 in respect to the external borrowing of USD 15,895,000 and working capital facilities of RS. 335,50,00,000 availed by Ruchi Infrastructure Limited in the year 2012.

(2.) Since this Corporate Debtor acquired Ruchi Infrastructure Ltd, though this loan facility was initially availed by Ruchi Infrastructure Ltd., the liability being fastened with this Corporate Debtor, this Company petition is filed against this Corporate Debtor.

(3.) Ecb facility was originally granted by this Creditor to Ruchi Infrastructure Ltd vide an Agreement dated 27.1.2012 with repayment schedule as mentioned in Clause 5(1) of the aforesaid Agreement, it has been modified twice in respect to the securities created by creating charge over movable and immovable assets of Ruchi Infrastructure. It has admittedly withdrawn entire loan amount of USD 1,58,95,000 in February, 2012. Since RBI granted its approval for transfer of this ECB loan from Ruchi Infrastructure Ltd to the Corporate Debtor for both being group companies, a Deed of Novation dated 31.3.2015 was executed between the parties transferring ECB loan liability to the Corporate Debtor wherein this Corporate Debtor has admitted that total amount then outstanding was USD 80,35,346. At the same time, an Agreement of Amendment of Securities and Hypothecation was also executed by the Corporate Debtor. Since this Corporate Debtor failed to repay the loan, this Creditor has recorded on 26.8.2016 that this Corporate Debtor defaulted in making repayment. The Corporate Debtor by its letter dated 6.9.2016, recorded the amounts "overdue" to 18 Banks including the Petitioner bank. Again on 9.1.2017, the Bank has sent an email to the Corporate Debtor that USD 51,41,424 was overdue and payable by the Corporate Debtor. For this money was not being paid on 17.1.2017, the Corporate Debtor informed that the Joint Lender's Forum (JLF) was formed to ascertain the viability options to revive the company. The correspondence in between the bank and the Corporate Debtor dated 6.2.2017, 15.2.2017 and the returns (Form ECB 2) filed with RBI admits that the aforesaid amount is overdue and payable by the Corporate Debtor to the Petitioner herein and the same has been showing in the Annual Report of the Corporate Debtor for the Financial Year 2016-17,