INDIAN BANK Vs. KADEVI INDUSTRIES LIMITED

JUDGEMENT

(1.) The Application was filed by the Financial Creditor namely Indian Bank against Corporate Debtor, i.e. Kadevi Industries Limited. The application was taken up for hearing on 10.02.2017 and posted on 13.02.2017. Since Counsel for the Petitioner requested time as his senior counsel is not available, the case was posted to 14.02.2017. On 14.02.2017 senior counsel sought time to submit information sought by the Bench by the next date of hearing. Accordingly, he has submitted his reply on 20.02.2017.

(2.) The Financial Creditor has stated that an amount of Rs. 171,09,96,659/- is in default as on 26.01.2017, out of which Rs. 124,60,22,645/- is the balance principal amount and Rs. 46,49,74,014/- is memorandum of interest and the date of default is from 31.03.2015. The Petitioner stated that the above loans were disbursed on various dates from 6th April 2009 onwards. The Loan account of the Corporate Debtor has been classified as 'NPA' as on 31.03.2015. The Applicant has also submitted documents in support of loan given to Kadevi Industries Limited.

(3.) The Corporate debtor was enjoying Rs. 80,00,00,000/- of the fund based and non-fund based limits with the Financial Creditor as a sole banker. As the Corporate Debtor desired to expand its business by entering to varied sectors of business verticals, it approached Banks such as SBH (State Bank of Hyderabad), Axis Bank, Corporation Bank to increase the financial facility limits. Upon deliberations, the above mentioned Banks have formed a Consortium authorising the Financial Creditor herein to lead the Consortium as a 'LEAD BANK' in order to facilitate financial assistance to the Corporate Debtor. Pursuant to the formation of Consortium of Banks, financial assistance to a tune of Rs. 135 Crores fund based and non-fund based was provided to the Corporate Debtor. Further, in the year 2009, the Financial Creditor has enhanced the limits from Rs. 135 Crores to 175 Crores of fund based and non-fund based.