PUNJAB NATIONAL BANK Vs. CONROS STEELS PVT LTD

JUDGEMENT

(1.) Punjab National Bank (hereinafter called 'PNB') has sought the Corporate Insolvency Resolution Process of Conros Steels Pvt. Ltd. {hereinafter called the 'Corporate Debtor') on the ground, that the Corporate Debtor committed default on 31.03.2012 in repayment of Rs. 60,59,67,926.00/- (INR Sixty Crores Fifty-Nine lakhs Sixty seven thousand Nine hundred and twenty Six 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.) In fact the Corporate debtor itself has tiled CP No.1513 of 2017 for initiation of corporate insolvency process under section 10 of the Code, however, this Bench has taken up this Petition for adjudication.

(3.) The Petition reveals that the Petitioner sanctioned Rs. 5 crores as Working Capital facility and a non-fund based limit of Rs. 20 crores to the Corporate Debtor 24.12.2009, and both the above facilities were renewed on 23.2.2011. Subsequently on 26.2.2011, the Corporate Debtor entered into a first supplemental working capital consortium with many Financial Institutions including the Petitioner, wherein the Bank of India Consortium enhanced the facility enjoved bv the Corporate Debtor from Rs. 177.50 crores to Rs. 227.50 crores.