LAKSHMI VILAS BANK LIMITED Vs. ORCHID PHARMA LIMITED

JUDGEMENT

(1.) Under Consideration is a Company Petition filed by Lakshmi Vilas Bank Limited (in short, 'Petitioner/Operational Creditor') against Orchid Pharma Limited (in short, 'Respondent/Corporate Debtor') under section 9 of the Insolvency and Bankruptcy Code 2016 (In short, 'IB Code 2016') r/w Rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity, IB Rules 2016).

(2.) Before proceeding with this matter, it would be appropriate to make a note of background facts for the purpose of determination of this petition.

(3.) Shri A.K. Mylasamy, the learned counsel appearing on behalf of the petitioner/OC submitted that the petitioner is a Scheduled Bank registered under the Banking regulation Act whereas the respondent/CD is engaged in pharmaceuticals business. The respondent had availed a loan of Rs. 50 crores from the petitioner and the said loan was later secured by mortgaging certain properties of the respondent. Later on, when the respondent defaulted to make repayment of loan, the petitioner initiated recovery proceedings under the SARFAESI Act, 2002 and the petitioner started selling the property for adjusting the loan. At request of the respondent, the petitioner stopped selling the property and leased certain property to the Respondent/CD by way of a deed of lease dated 07.10.2013 and the respondent has been paying a monthly lease rent for the period as mentioned below:-