IDBI BANK LIMITED Vs. BHATIA GLOBAL TRADING LIMITED

JUDGEMENT

(1.) Idbi Bank Limited filed this Petition under Section 7 of The Insolvency and Bankruptcy Code, 2016 [hereinafter referred to as "the Code"] read with Rule 4 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 [hereinafter referred to as "the Rules"] seeking reliefs under Section 7(5)(a) and Section 13(1)(b) of the Code.

(2.) Bhatia Global Trading Limited is a Public Limited Company (hereinafter called as "Company") and was incorporated on 28.8.1991 under the Companies Act, having its Registered Office at BCC House, 8/5, Manoramaganj, Navratan Bagh Main Road, Indore, Madhya Pradesh.

(3.) The Authorised Share Capital of the Company is Rs. 46,30,00,000/-. The Paid-Up Share Capital of the Company is Rs. 45,96,71,890/-. The Main Object of the Company was to carry out the business of trading of Coal. IDBI sanctioned Working Capital Limits aggregating to Rs. 75.60 Crores comprising of Fund-based Limit of Rs. 5.00 Crores, and Non-Fund-based Limit by way of Inland Letter of Credit, Foreign Letter of Credit/Buyers Credit of Rs. 70.00 Crores and Review of Rupee Term Loan of Rs. 60.00 Lakhs. Subsequently, Forward Contract Limit of Rs. 10.00 Crores was sanctioned for the purpose of meeting Working Capital requirements aggregating to Rs. 85.00 Crores. The Company mortgaged its properties and created Charge by way of Hypothecation over the moveables of the Company. The Company also gave Irrevocable Corporate Guarantee for the financial assistance to the tune of Rs. 50.70 Crores granted and disbursed to Asian Natural Resources (India) Ltd., on 21.02.2009. The Company availed Rs. 75.00 Crores and LER facility (outside consortium) of Rs. 10.00 Crores from time to time. The Company also availed Fund-based Cash Credit Limit of Rs. 05.00 Crores. The Asian Natural Resources (India) Ltd., has also availed sums aggregating to Rs. 50.70 Crores which was secured by Corporate Guarantee of the Respondent Company.