- (1.) The present Company Application bearing CA No. 154/2017 in CP (IB) 10/7/HDB/2017 is filed by Shri Raghu Babu G, Resolution Professional under Section 12 of Insolvency and Bankruptcy Code, 2016 RAv Regulation 40 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, by seeking a direction to extend the Corporate Insolvency Resolution Process for a further period of 90 days from 11.09.2017.
(2.) Heard Shri V.K. Sajith, Learned Counsel for the Financial Creditor and Shri G. Raghu Babu, Learned Interim Resolution Professional.
(3.) The Learned IRP submitted, that in pursuant to admission of the case by the Adjudicating Authority on 15.03.2017 appointing him as IRP, the following developments taken place:- (a) CIRP Time line and Members of CoC Date of commencement of CIRP 15th March 2017 180 days period ends on 11.09.2017 CoC Members Indian Bank, State Bank of India, Axis Bank and Corporation Bank Voting share of CoC Members Indian Bank 48.09% State Bank of India 20.14% Axis Bank 16.50% Corporation Bank 15.28% (b) During the process of CIRP, Mr. M.S. Prabhakar, Resolution Applicant & Promoter of CD, has come with the proposal of investment from Citax Ventures Limited, Special Purpose Vehicle of Netoil (Singapore) (Pte) Limited, to submit the Resolution Plan that includes the dues of the Financial Creditors and Resolution plan dated 6th July, 2017 submitted by Mr. M.S. Prabhakar, Resolution Applicant and Promoter, was discussed in the 4th CoC meeting held on 07th July, 2017. Thereafter, Financial Creditors sought for improvement of the settlement amount from Rs. 150 crores and additional fund to cover the unexpired Bank Guarantees. (c) Accordingly, the settlement amount was increased from Rs. 150 cores to Rs. 155 crores, and it was also agreed to provide for Rs. 3.46 crore towards 100% cash margin with the banks, for the outstanding Bank Guarantee issued by State Bank of India and Indian Bank. (d) Subsequently, Financial Creditors submitted their letters for in-principle approval for Rs. 155 crores, and Rs. 3.46 crores towards 100% cash Margin with the Banks, for the outstanding Bank Guarantee issued by State Bank of India and Indian Bank and he has also stated therein that the Financial Creditors are insisting Rs. 27 crore of Escrow amount instead of Rs. 23.25 crores and submit that this issue is under negotiation with the concerned higher authorities of the CoC and submit that this issue is likely to be resolved soon. (e) It is further stated that the CIRP period of 180 days as prescribed under the IBC would expire on 11.09.2017 and since above issue is still to be resolved, four similar circular Resolutions dated 9th August, 2017 are passed by all the members of the CoC by authorizing Shri G. Raghu Babu, Resolution Professional to make application before NCLT, Hyderabad Bench, seeking extension of the period of 180 days for completion of CIRP in question. Therefore, the Learned Resolution Professional pray this Tribunal to further extend a period of 90 days beyond 180 days.;