M.K. Shrawat, Member - (1.) The Petitioner M/S. SBM Paper Mills Private Limited is the Corporate Debtor who had filed the Petition on 04.09.2017 under Section 10 of the Insolvency & Bankruptcy Code 2016 to declare itself as insolvent.
(2.) Background of the case : - a) The Company was incorporated as M/s Seth Bankatlal Malu Industries Pvt. Ltd. on 14th July, 2000 and has changed its name to M/s. SBM Paper Mills Pvt. Ltd. with effect from 27th April, 2015 with the object to involve in Trading activities of papers. b) The term loan and working capital facilities were granted by the Allahabad Bank from time to time which were restructured by sanction letters dated 24 September, 2014 and by other Financial/Operational Creditors to the erstwhile company namely M/s Seth Bankatlal Malu Industries Pvt Ltd., which is now M/s. SBM Paper Mills Pvt. Ltd. w.e.f 27th April, 2014. Problems in repayment began from the year 2016.
(3.) The Corporate Debtor has filed this Application based on a default in payment to the bank and its Financial/Operational Creditor viz. M/S. Allahabad Bank, Opposite Skylark Hotel, Central Avenue, Gandhi Bagh, Nagpur - 440002, Maharashtra and Operational Creditor Jai Hanuman Industries, Lathia Rubber Mfg. Co. Pvt. Ltd. etc. The Computation of default amount to each of Bank's Debt alongwith the statement of accounts on 06.09.2016, as follows:- 3.1 That as per the above chart the present position of the total outstanding debt is stated to be ^ 43,32,16,448.03/-.;