BANK OF INDIA Vs. TIRUPATI INFRAPROJECTS PVT LTD

JUDGEMENT

(1.) Bank of India being a lead Bank comprising the consortium of Bank of Baroda, Dena Bank (which has assigned its debt in favour of Phoenix ARC Pvt. Ltd. on March 23, 2016), Canara Bank, Uco Bank, Union Bank of India and Corporation Bank has approached this Tribunal under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity the 'Code') describing itself as 'Financial Creditor' with a prayer to initiate Corporate Insolvency Resolution Process against the 'Corporate Debtor'. The applicant has claimed that it is a 'Financial Creditor' and the respondent is a 'Corporate Debtor' within the meaning of the provisions of the Code.

(2.) Brief facts necessary for disposal of the controversy raised in this application are that Bank of India is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its head office at Mumbai. The 'Corporate Debtor'-Tirupati Infraprojects Pvt. Ltd. was incorporated under the Companies Act, 1956 on 05.01.2007 and is duly registered with the Registrar of Companies, NCT of Delhi and Haryana. A certificate of its Incorporation alongwith Memorandum of Association and Articles of Association has been placed on record (Annexure A/ 1).

(3.) The 'Corporate Debtor' approached the 'Financial Creditor' for grant of term loan facility of Rs. 70 Crores out of its total term loan requirement of Rs. 300 Crores under multiple banking arrangement with a view to set up a five star hotel cum retail space at Plot No. D, Commercial District Centre, Paschim Vihar, New Delhi in area measuring 13158.71 sq. mtrs. It was represented that the 'Corporate Debtor' was a part of group of companies with diverse interest in real estate, public schools, shopping malls and hospitality township developments, etc. It was further disclosed that the 'Corporate Debtor' had acquired land measuring 3.25 acres from DDA and it has already paid a sum of Rs. 60.26 crores to DDA, which was 25% of the total bid value of the land i.e. Rs. 241 Crores. The 'Corporate Debtor' proposed to develop a hotel and shopping complex on the said plot. Accordingly, a letter dated 15.09.2008 was submitted with a request to grant term loan of Rs. 70 Crores.