INDIAN BANK Vs. NSR STEELS PVT LTD

JUDGEMENT

(1.) Under adjudication is an Application that has been filed by Indian Bank (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 against M/s. N.S. R. Steels Private Limited ( hereinafter referred to as Corporate Debtor) . The prayer made is to admit the Application, to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, declare moratorium and appoint Interim Resolution Professional (IRP) under the Insolvency and Bankruptcy Code, 2016 (I&B Code) . The counter has been filed by the Corporate Debtor. Mr. Karthik an Administrative Manager of the Corporate Debtor is present on behalf of the Corporate Debtor.

(2.) We have heard the Counsel for Financial Creditor and the Administrative Manager for the Corporate Debtor and perused the record.

(3.) The Financial Creditor is claiming outstanding debt to the tune of Rs.36,47,81,328/- as on 22.09.2017. The loan facilities have been extended to the Corporate Debtor under several agreements; copies of which are placed in the typed set filed with the Application. The amount of loan was given for manufacturing the steel rolls, as the Corporate Debtoi is running the factory and dealing in the business of manufacturing of steel rolls. The facilities of loan have been extended by the Financial Creditor to the Corporate Debtor on different dates as stated in the Application. But, the Corporate Debtor failed to make the payments of the outstanding debt. Therefore, account of the Corporate Debtor was classified as NPA on 30.06.2015. The statements of accounts are placed at pages 468 to 629 of volume II of typed set filed with the Application. It is established from the record placed on the file that there is existence of default on the part of the Corporate Debtor.