Rajeswara Rao Vittanala, Member - (1.) The Company petition bearing C.P. No. (IB)/128/10/HDB/2017 is filed by Neeta Chemicals (I) Pvt. Ltd., (here in after referred to as Corporate Debtor/NCIPL), under Section 10 of the Insolvency and Bankruptcy Code, 2016 ('IBC') read with Rule 7 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 ('Rules') by seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of Neeta Chemicals (I) Pvt. Ltd. under IBC, 2016.
(2.) Brief facts of the case, as discerned from the pleadings of parties, which are relevant to adjudicate the present case are as follows: 1) The Corporate Debtor obtained a loan amount of Rs. 65.50 Crore vide Sanction Letter dated July 28, 2009 from the State Bank of India (herein after referred to as Respondent/Financial Creditor) and the necessary loan documentation was executed. Again the Overall Limit was enhanced to Rs. 197.50 Crore vide sanction letter dated 12th November, 2010 and necessary loan documentation was executed. 2) The loan account of the Corporate Debtor was classified as a Non-Performing Asset ("NPA") on September 26, 2013 for consecutive defaults in the payment of loan amount. The Financial Creditor had issued numerous default notices demanding the Corporate Debtor to make payment, and also had numerous meetings with the Corporate Debtor to discuss on the affairs of the Corporate Debtor, so as to find out any solution to the issue in question and the last meeting on this account took place in July 2017. However, the Corporate Debtor failed to come for settlement of the issue in question. 3) Subsequently, the Loan Account of the Corporate Debtor has been classified as Non-Performing Asset ("NPA") on December 26, 2013 due to non-repayment of outstanding liabilities. The Bank had issued number of Default Notices to the Corporate Debtor due to default in payment of loan amount. And the first default in payment of loan amount was occurred on September 26, 2013 and continues till date. 4) In view of the default on the part of the Corporate Debtor, the Financial Creditor/Bank got issued a Legal Notice dated November 22, 2016 calling upon the Corporate Debtor, and the Guarantors to pay the outstanding amount of Rs. 324,64,55,653/- including interest. However, the Corporate Debtor failed to make any payment to the Bank/Financial Creditor against the amount due. 5) As on date, an amount of Rs. 374,97,50,710/- is due from the Corporate Debtor, which includes the principal amount of Rs. 180,56,93,546/- and the interest amount of Rs. 194,40,57,164/-. 6) Since no payment was made against the outstanding due amount, the Financial Creditor, on December 1, 2016, invoked the provisions of the SARFAESI Act by issuing a Demand Notice under Section 13(2) of the SARFAESI Act by demanding that the outstanding amount of Rs. 329,71,74,696/- be paid within sixty (60) days from the date of the Demand Notice. The Demand Notice also put the Corporate Debtor and the Guarantors to notice, under Section 13(13) of the SARFAESI Act as not to dispose of any of the mortgaged properties. The Demand Notice was also got published in Deccan Chronicle, English daily newspaper, and Eenadu, Telugu daily newspaper, on 10th January 2017 and 13th January 2017. 7) Instead of paying the outstanding due amount or regularizing the loan account, the Corporate Debtor got issued a Reply Notice dated January 3, 2017 to the Demand Notice by denying the outstanding due amount, execution of the loan documents etc. In reply, the Bank got issued a Rejoinder on March 4, 2017 to the Demand Notice disputing all the allegations made in the Reply to the Demand Notice, and again called upon the Corporate Debtor and the Guarantors to discharge the outstanding due amount. 8) The Corporate Debtor had not made any payment of the outstanding due amount. So Financial Creditor/the Bank got issued the Possession Notice dated April 17, 2017 under Rule 8(1) of the Security Interest (Enforcement) Rules, 2002 and has also taken possession of the properties as provided for in Section 13(4) of the SARFAESI Act on April 17, 2017. And Possession Notice was further published in Indian Express and Andhra Jyothy on April 20, 2017, English and Telugu daily news papers respectively. 9) On May 3, 2017, the Financial Creditor got issued Notice Prior to Sale under Rules 8(5) and 8(6) of the Security Interest (Enforcement) Rules, 2002 to the Corporate Debtor, by intimating that the secured assets mortgaged/charged to Bank, in question, would be sold by public e-auction at any date after expiry of thirty (30) days from the date of the said notice. 10) On the expiry of thirty (30) day period from the issuance of said Notice Prior to Sale, the Bank got published E-Auction Sale Notice in The Indian Express, English daily, and Andhra Jyothi Telugu daily newspapers on 18th July, 2017. Accordingly, the Bank issued a letter dated 21st July, 2017 to Corporate Debtor intimating it about the proposal of Bank to conduct E-AUCTION on 28.08.2017 for sale of some of properties in question as mentioned in the notices issued earlier. 11) In the above circumstances, the Company petition is filed by seeking a direction to initiate Corporate Insolvency Resolution Process respect of Neeta Chemicals (I) Pvt. Ltd.
(3.) We have heard Mr. A.S. Prashanth along with Mr. Amir Ali Bavani Learned Counsels for the petitioner/Corporate Debtor and Mr. G. Durga Bose Learned Counsel for the respondent/Financial Creditor. We have carefully examined all the pleadings along with supported documents filed by the respective parties and extant provisions of IBC, 2016.;