STATE BANK OF INDIA (STRESSED ASSETS MANAGEMENT BRANCH) Vs. MAHARAJA OIL IMPORTS AND EXPORTS INDIA (P) LTD

JUDGEMENT

(1.) This is an Application filed by the State Bank of India (hereinafter referred to as Financial Creditor) under Section 7 of the Insolvency And Bankruptcy Code 2016 r/w Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

(2.) The amount claimed by the Financial Creditor is to the tune of Rs. 68,65,95,202.75p due as on 18.06.2017. The Financial Creditor submitted that the said money was advanced as loan to the Corporate Debtor and the Corporate Debtor defaulted in making payment of the same. Counsel for the Financial Creditor drew our attention towards the Director's report which is placed at page 274 of the typed set of Application wherein it is stated that the company incurred loss to the tune of Rs. 362.60 Lakhs against profit of Rs. 14.96 Lakhs in the previous year and it has been regretted by the Board to inform that the business operations of the company has come to an end. One more communication is placed on the file at page 126 which is a letter written by the Corporate Debtor acknowledging the debt due and payable by them. Another document is placed at page 76 of the raped set of Application which is a Demand Notice dated 01.03.2017 under Section 13(2) of the SARFAESI Act, 2002 to the borrower to which the Corporate Debtor has replied vide letter dated 11.06.2017. In response to the same, the Financial Creditor has given reply informing the Corporate Debtor to repay the dues as stipulated in the Demand Notice dated 01.03.2017, and it was also informed that in case the Corporate Debtor commits default to make payment of the outstanding dues, then, recovery proceedings under Section 13(4) of the SARFAESI Act, 2002 will be initiated.

(3.) From above, it has been ascertained that there is default on the part of the Corporate Debtor. The Financial Creditor has fulfilled all the requirements of law and has also proposed the name of Interim Resolution Professional (IRP) after obtaining the written consent in Form-2. We are satisfied that Corporate Debtor committed default in making payment of the outstanding debt. Therefore, CP/531/(IB)/CB/2017 is admitted and we order the commencement of the Corporate Insolvency Resolution Process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed.