AIPHINE PHARMACEUTICALS PVT Vs. ANDHRA BANK

JUDGEMENT

(1.) The petitioner No.1 is a Company registered under the Companies Act, 1956 and deals in pharmaceuticals. The petitioner No.2 is its Managing Director.

(2.) The Andhra Bank (1st respondent) sanctioned working capital limits of Rs.35.00 lakhs and term loan of Rs.152.00 lakhs to the petitioners under SMSE Scheme in March, 2015 with moratorium period of 6 months for the purchase of the 1st petitioner Company from its existing promoters. At the time of take-over of the said Company by the 2nd petitioner, the 1st petitioner was a major supplier of medicine to M/s.Singareni Collieries Company Limited. However, due to reasons beyond the control of the petitioners, production commenced only in September, 2016 though the Company was acquired on 19-06-2015. Repayment schedule started in December, 2015 itself and M/s.Singareni Collieries Company Limited later changed its policy and disqualified the petitioner stating that it did not have minimum Rs.10.00 crores turnover. This caused financial distress to the petitioners.

(3.) The loan account of the petitioners with the 1st respondent Bank was declared as an NPA on 31-07-2016 and demand notice under Section 13(2) of the SARFAESI Act, 2002 was issued on 01-08-2016. Petitioners claimed to have approached the 1st respondent several times and requested for extension of moratorium period. On 01-11-2016/06.11.2016, they wrote a letter to the 1st respondent explaining their difficulties in paying loan installments and also sought for extension of moratorium by 12 months so that the 1st petitioner can revamp its business and start repaying the loan amount installments.