Page 108 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Principal Bench
27 March 2014: The Financial Creditor reviewed

and renewed the last financial facility with a
reduction in credit limit to INR 631.3 million vide
Credit Arrangement Letter dated 27 March 2014,

which is enclosed herewith as Annexure-Q."

The aforesaid details would show that the loan facilities were extended to the Corporate Debtor to
the extent shown in the aforesaid data. The total outstanding of principal amount is to the tune of Rs.

647.4 million plus interest component of Rs. 491.1 million.

4. The aforesaid amount of default disclosed by the 'Financial Creditor' satisfies the requirement of

Section 3 (12) of the Code. The amount of default as on 31.05.2017 is Rs. 1,138+5 million including the
component of interest. The default by the Corporate Debtor occurred on 31.12.2013, when the Corporate
Debtor admitted the dues but failed to make the payment. The Financial Creditor has claimed that the

default occurred on 18_04.2014 when its account was classified as a Non-performing asset by the
Financial Creditor at the end of 90 days. The default continued to operate on 08.05.2[11 4 when the

Financial Creditor was slapped with a notice under Section 13 (2) of the SARFAESI Act to initiate
recovery process. As a consequence of the proceeding the Financial Creditor took symbolic possession of
the mortgaged property belonging to the Corporate Debtor on 15.09.2014. The default has also occurred

on 09.06.2015 when the property mortgaged by Mr. RC. Gupta, situated at E-163, Pandav Nagar, New
Delhi was sold under the SARFAESI Act against a cash consideration of Rs. 17.1 million and sale
proceeds were adjusted against the outstanding dues of all the consortium banks on pari passu basis.

However, the dues could not be satisfied completely. Again, the property mortgaged by Mr. Rishi Gupta,
situated at 462, 6th Floor, Sector 6/33 Dwarika, New Delhi was sold under the provisions of SARFAESI
Act against a cash consideration of Rs. 12.4 million and sale proceeds were again adjusted against the

outstanding dues of all the consortium banks on pall passu basis. Likewise, the properties mortgaged by
Ms. Shanta Gupta, situated at Hari Nagar, New Delhi was sold on 05.10.2016 against a cash consideration

of Rs. 20.1 million and the sale proCeeds were adjusted against the outstanding dues of all the consortium
banks on pari passu basis. Notices with regard to public auction of the mortgaged properties were
published in the newspaper on 11.03.2016, 11.11.2016 and 23.12.2016 which are illustrations of default

and default continued to occur on each and every day. The default finally occurred on 31.01.2017 when
the property mortgaged situated at Bhiwadi was auctioned and the amount adjusted. After adjustment, a
sum of Rs. 1,138.15 million continued to be in default even after appropriating the proceeds of the auction

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