PUNJAB NATIONAL BANK Vs. SHREE RADHE INDUSTRIES LTD

JUDGEMENT

(1.) Punjab National Bank (hereinafter called 'PNB') has sought the Corporate Insolvency Resolution Process of Shree Radhe Industries Ltd. (hereinafter called the 'Corporate Debtor') on the ground, that the Corporate Debtor committed default on 30.9.2007 in repayment of H 32,84,93,035/- (INR One hundred Thirty Two crores Eight) ' Four lakhs Ninety three thousand and Thirty five only) , 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.) This petition was filed on 5.6.2017, listed on 9.6.2017, the Petitioner advertised the notice of Petition in English Daily in Lokmat Times and Marathi Daily Lokmat both on 23.6.2017 stating that the Petition was fixed for hearing on 7.7.2017, subsequently the Petition was listed on 7.7.2017, 11.07.2017, 21.7.2017, and 26.7.2017, when the Corporate Debtor did not appear despite substituted service effected against it, this Bench set the Corporate Debtor ex-parte for its non-appearance and decided the case basing on the facts available on record.

(3.) The Petition reveals that the Corporate Debtor initially obtained Cash Credit facility for Rs. 120 lakhs and Term Loan facility of 1550 lakhs in the year 2001, from the Petitioner. Subsequently, on the request of the Corporate Debtor, Additional Term Loan facility were granted from time to time and as on 20.5.2005 the Corporate Debtor granted Term Loan limit of Rs. 442 lakhs, Cash Credit limit of Rs. 927 lakhs and non-fund based guarantee limit of Rs. 20 lakhs. The Corporate Debtor has executed various security documents for obtaining the facilities. The Corporate Debtor as well as the Guarantor executed Guarantee Agreements in favour of the Petitioner for securing the loan.