Bikki Raveendra Babu, Member - (1.) Somnath Textile Private Limited filed this application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "the Code") read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as "the Rules").
(2.) The petitioner is a company registered under the Companies Act, 1956. The Registered Office of the petitioner company is situated in village Tati Tahiya, Palsana, Surat.
(3.) In this petition, State Bank of India is shown as the Financial Creditor of the petitioner company. The petitioner filed the resolution passed by the Board of Directors for initiating Corporate Insolvency Resolution Process. The Board of Directors of the petitioner company authorized Mr. Paresh K. Patel, one of the Directors, to file this petition on behalf of the company. It is the case of the applicant that State Bank of India sanctioned cash credit of Rs. 1,00,00,000/-, term loan of Rs. 17,00,00,000/- and another term loan of Rs. 8,00,00,000/-, aggregating to Rs. 26,00,00,000/-. Subsequently, the applicant suffered severe liquidity crisis and was unable to repay the debt. State Bank of India classified the debt as non-performing asset on 30th May, 2015. State Bank of India issued a notice under Section 13(2) of the SARFAESI Act, 2002 on 27.5.2016 to the applicant. The principal outstanding sum to the State Bank of India, as on 27.5.2016, was Rs. 31,23,57,256.63 apart from interest of Rs. 67,79,29,176/-. State Bank of India took symbolic possession of the secured assets of the applicant company. State Bank of India took physical possession of the secured assets of the applicant with the aid of orders of the District Magistrate, Surat, passed on 7.10.2016, by invoking Section 14 of the SARFAESI Act.;