Bikki Raveendra Babu, Member - (1.) Edelweiss Asset Reconstruction Co. Ltd., acting as Trustee' of EARC Trust SC 143, filed this Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ["IB Code" for short] read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, ("IB Rules" for short) styling itself as 'Financial Creditor' for initiation of Corporate Insolvency Resolution Process in respect of Kalptaru Alloys Private Limited, treating it as 'Corporate Debtor'.
(2.) Respondent Company is a Private Limited Company incorporated under the Companies Act having its Registered Office in Thaltej Cross Road, Ahmedabad. The Authorised Share Capital of the Respondent Company is 7,50,00,000. The Paid-Up Capital of the Respondent Company is Rs. 3,90,25,000. The Main Object of the Respondent Company is to carry on business of manufacturing of MS Ingots (raw material for steel making).
(3.) Respondent approached Indian Overseas Bank (IOB) in 2004 for credit facilities for the purpose of business. IOB sanctioned Cash Credit, Letter of Credit, Letter of Guarantee and various Term Loan facilities to the Respondent Company amounting 28.61 Crores vide Sanction Letter dated 23.02.2012. Respondent Company in evidence of the loans borrowed executed relevant loan and security documents in favour of IOB on various dates, the last one being in 2012. Respondent also executed Hypothecation Agreements, Guarantee Agreements, Term Loan Agreements in favour of IOB. On 23rd February, 2012, IOB sanctioned/renewed/enhanced the following facilities to the Respondent; 1. Cash Credit - Rs. 4.50 Crs.(Renewal) 2. WCTL - Rs. 5.72 Crs.(Renewal; original limit was Rs. 7.50 Crs.) 3. Term Loan I - Rs. 0.52 Crs.(Renewal; original limit was of Rs. 3.00 Crs);