Mohd. Sharief Tariq, Member - (1.) Under adjudication is an Application that has been filed by Central Bank of India and State Bank of India (hereinafter referred to as Financial Creditors) 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. Ashok Magnetics Ltd. (hereinafter referred to as Corporate Debtor). The prayer made in the Application is to admit the Application, initiate the Corporate Insolvency Resolution Process, declare Moratorium and appoint an Interim Resolution Professional (IRP) under the relevant provisions of the I & B Code, 2016. The Corporate Debtor caused appearance through Counsel and filed counter.
(2.) We have heard the Ld. Counsel for Financial Creditors and Ld. Sr. Counsel for the Corporate Debtor. The relevant factual detail is as follows:- In the Application at page 5 under part IV, Column 2, an amount of Rs. 12,96,57,829.19/-p as on 30.11.2016 is due and payable to Central Bank of India and Rs. 27,47,85,655.86/-p as on 19.10.2015 is due and payable to State Bank of India by the Corporate Debtor. The detail of the outstanding debt pertaining to 1st Applicant is provided at page 16 of the Application which is reproduced as below:- Which tallies with the statement of account placed at pages 138 and 139 of the typed set to the Application. Further, the figures provided at page 16 also tallies with the statement of account placed at pages 142 and 143 of the typed set to the Application. The detail with regard to the outstanding debt payable by the Corporate Debtor to State Bank of India is placed at pages 17 to 25 of the typed set to the Application which tallies with the statement of account placed at pages 563 and 565 of the typed set to the Application.
(3.) The Central Bank of India/1st Applicant has sent notice under Section 13(2) of the SARFAESI Act, 2002 on 17.12.2015 to the Corporate Debtor, the copy of which is placed at page 87 of the typed set to the Application. The demand notice under Section 7 of the I & B Code, 2016 was sent to the Corporate Debtor on 12.06.2017 to which the Corporate Debtor has given their reply on 19.06.2017 stating therein that the loan is collaterally secured by immovable properties, and therefore, the provisions of the I & B Code, 2016 cannot be invoked. The copy of the notice given by Central Bank of India under Section 7 and reply given to the same are placed at pages 148 and 150 respectively of the typed set to the Application.;