STATE BANK OF INDIA Vs. JYOTI STRUCTURES LTD

JUDGEMENT

(1.) It is a Company Petition filed by State Bank of India u/s. 7 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor namely Jyoti Structures Ltd. for this Corporate Debtor availed loan facility of Rs. 1,227.25 crores through fund based and non-fund based arrangements, thereafter this Corporate Debtor defaulted in making repayment of the loans availed. When failed to clear the loan, a Master Restructuring Agreement (MRA) dated September 29, 2014 was entered into for restructuring, but when that was also failed, this applicant filed this application to initiate Insolvency Resolution Process against this Corporate Debtor on the ground that, as on 20.06.2017, this Corporate Debtor failed to repay the outstanding balance of Rs. 1,600.74 crores indebted to this creditor in relation to the loan facilities availed not only from this creditor but also from the erstwhile Bank, State Bank of Hyderabad, hence this Petition.

(2.) On March 15, 2012, State Bank of India granted loan facility of Rs. 1,227.25 crores to this Corporate Debtor on working capital consortium agreement dated March 15, 2012 executed by this Debtor. When Debtor failed to repay the loan as per the consortium agreement, the loan was restructured on September 29, 2014 in pursuance of Master Restructuring Agreement under the corporate restructuring scheme of Reserve Bank of India along with certain additional facilities granted to the Corporate Debtor under the said MRA, likewise erstwhile Bank SBH also granted loan facility to the debtor company.

(3.) The details of the facilities granted by State Bank of India and State Bank of Hyderabad to the Corporate Debtor are set out below: