Page 136 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Principal Bench
area(Annexure R/5). As a result, construction was completely suspended. Reference has also been made

to the Joint Lender meetings but no substantial resolution could be achieved.

The objection raised by the 'Corporate Debtor' has been noticed to highlight their wish. However, the fact

remains that till date substantial outstanding amount in default is payable by the 'Corporate Debtor'.
Therefore, this objection too would not cut any ice.

17. The New Okhla Industrial Development Authority has filed an application for intervention under Rule
32 of the NCLT Rules, and has placed on record a copy of the lease deed executed between the 'Corporate
Debtor' and the New Okhla Industrial Development Authority.

18. The question which arises for consideration is whether the petitioner has been able to satisfy the
requirement of Section 7 of the Code. According to explanation appended to Section 7(1) of the Code an

application by the financial Creditor' either on its own behalf or jointly with the other financial creditor
would be competent for initiating Corporate Insolvency Resolution Process against a 'Corporate Debtor'

before this Tribunal when a default has occurred. It is obvious that the lead bank like the petitioner is
competent to file this application on its own behalf and other banks who are members of the Consortium.

19. In order to ascertain whether the default has occurred, it will be profitable to read Section 3(12) of the
Code which states that default means non-payment of debt when whole or any part of the instalment of
the debt has become due & payable and the same has not been repaid by the 'Corporate Debtor'. In the

present case, it has eminently come on record that the 'default' has occurred many a times. The initial date
of default by the 'corporate debtor' in accordance with the term loan facility is 31.03.2016. The
computation of defaulted amount and the date of default is as under:-

Sr. Facility Total overdue at [30th April], 2017 Date of Days of

No. (Principal + Interest + Overdue Interest + Penal Interest) Default Default
(INR)
RTL Facility 59,38,00,000.00+4,51,75,849.00+6,63,86,493.08+61,81,339.8 31.03.201 398
8 6 days till

date
Total 71,15,43,682.00

20. The default has again occurred when a demand notice dated 06.03.2017 was issued (acceleration

notice) and the repayment of the defaulted amount was required to be made within seven days from the
date of acceleration notice. The principal defaulted amount in most documents is the same. However, in

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