Manorama Kumari, Member - (1.) Allahabad Bank, through Shri Laxmichand Batra, Assistant General Manager filed this Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ["IB Code" for short] read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, ("IB Rules" for short) against M/s. Sai Infosystem (India) Limited, with a request to initiate Corporate Insolvency Resolution Process treating it as 'Corporate Debtor'. 1.1. The Chief Manager of the Applicant Bank has by letter - dated 25.8.2017 authorised the Assistant General Manager, SP Nagar Branch to refer the case to NCLT under IBC on immediate basis.
(2.) Respondent Corporate Debtor is a Public Limited Company having its Registered Office at Ahmedabad. The Authorised Capital of the Respondent Company is Rs. 32,00,00,000/-. The Paid-up Share Capital of the Respondent Company is Rs. 9,42,93,580/-. The main object and other objects for which the Respondent Company was incorporated are as set out in the Memorandum and Articles of Association filed with the Registrar of Companies, Gujarat.
(3.) It is the case of the Applicant that the Respondent was sanctioned a Fresh Term Loan of Rs. 50.00 Crores (out of Total TL requirement of Rs. 160.00 Crores) vide sanction letter dated 18/19.4.2011 to part finance the Internet Data Centre (IDC) project in association with BSNL for four locations, namely, Bangalore, Hyderabad, Ranchi and Ernakulam at a total project cost of Rs. 240.00 under the consortium lead by State Bank of India. The Applicant Bank also issued a Sanction Letter dated 18.9.2012 in favour of the Respondent at Annexure A/8 with terms and conditions. The Applicant also issued a Sanction Letter dated 20.4.2013 vide Annexure A/10 to the Respondent with terms and conditions. The Respondent executed various documents in favour of the Applicant Bank. The Applicant granted fund-based facilities and non-fund based facilities as per Annexure A5 (collectively) which were accepted by the Respondent vide its letter dated 20.5.2011. The Respondent Company had executed a Demand Promissory Note I dated 24.5.2011 for Rs. 60.00 Crores and General Letter of Hypothecation dated 24.5.2011 for Rs. 60 Crores in favour of the Applicant Bank. Thereafter the Respondent approached the Applicant Bank in the year 2012 and proposed to review the account and requested for renewal of the Credit Facilities, i.e. Cash Credit at Rs. 25 Crores and Term Loan at Rs. 31.76 Crore on the existing terms and conditions. The Applicant renewed the same and executed r t various security documents. The Respondent again approached the Applicant in the year 2013 and review and renewal of the credit facilities, i.e. Cash Credit limit at existing level at Rs. 25 Crores and Term Loan outstanding of Rs. 26.89 crores under the consortium lead by State Bank of India, sanction of Cash Credit (ad-hoc limit) of Rs. 2.50 Crores (10% of existing Cash Credit Limit) for a period of 90 days @ BR plus 3.50% p.a. for meeting the working capital gap of the i - Company under the Consortium led by the State Bank of India; Sanction of fresh One Time Performance Bank Guarantee Limit of Rs. 69.89 Crores for a period of 6 years for executing the order issued by the Home Department, Govt, of Maharashtra for execution of certain projects. The Respondent Company had accepted all the terms and conditions of the sanction letter No. AB/SPN/ADV/SIS/2013-14/081 dated 20.4.2013. 3.1. The Respondent Company had executed Demand Promissory Notes dated 12.6.2013 for Rs. 124.28 Crores, Undertaking ADV-24 dated 12.6.2013 for Stocks and Book Debts in Cash Credit Facility account; General Letter of Hypothecation dated 12.6.2013 for Rs.. 124.63 Crores. Disbursements on account of various Facilities granted by the Applicant to the Respondent Corporate Debtor were made through Funds Transfer under RTGS to the account of the Respondent Corporate Debtor. The copy of the Certificate as per Banker's Book of Evidence Act, 1891 dated 24.10.2017 shows the total outstanding amount due and payable as Rs. 84,41,49,406.00. 3.2. It is the case of the Applicant that the Respondent t. w - I Company defaulted in repayment of term loans/financial facilities and the total irregularities in the account amounted to Rs. 51.63 Crores and as the Chief Promoter/ Director of the Respondent Company fled away from the country the Applicant had filed First Information Report against the Respondent Company. 3.3. The Applicant also filed Original Application, bearing OA No. 408 of 2014 before the Hon'le Debts Recovery Tribunal and the same is pending. 3.4. According to the Applicant various financial assistances aggregating to Rs. 132.39 crores were given to the Respondent, out of which a sum of Rs. 60.00 crores was secured by the Guarantee of the Respondent Company. 3.5. Inspite of repeated reminders, the Respondent Company did not make any payment to the Applicant Bank. The Applicant Bank has declared the account of the Respondent Company as 'NPA' on 21.10.2013. The Applicant issued a Demand Notice under the SARFAESI Act, 2002 dated 12.11.2013 calling upon the Respondent Company to pay an amount of Rs. 52,52,00,074.24 together with w I J further interest thereon with effect from 13.11.2013. However the Respondent failed and neglected to make payment. Thereafter, the Applicant Bank issued notice dated 8.9.2017 claiming outstanding amount of Rs. 83,28,73,387.00 inclusive of interest. But the said notice was returned with remarks "Left". The Applicant Bank has also issued a letter bearing Ref. No. HO/Rec/WD/1309 dated 1.10.2016 under which the Respondent Company was declared as a Wilful Defaulter, which was acknowledged by Mr. Sunil S. Kakkad, one of the Directors of the Respondent Company. It is thus the case of the Applicant that the Respondent Company is liable to pay to the Applicant an unpaid debt of Rs. 84,41,49,406.00 together with further interest thereon till date of realisation. 3.6. The Applicant has filed Total Due Certificate under the Bankers' Books Evidence Act; copy of the Search Report dated 24.10.2017; Particulars of Security held; copy of ROC record confirming the charges of Financial Creditor; Audited Balance sheet for the financial years 2010-11, 2011-12 and 2012-13; and Ledger accounts of all loans and liabilities.;