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Order Passed Under Sec 7
By Hon’ble NCLT Mumbai Bench

IN THE NATIONAL COMPANY LAW TRIBUNAL
MUMBAI BENCH

C.P. (I.B.) No. 247/7/NCLT/MAH/2017

Decided On: 14.06.2017

Applicant: Indian Bank Ltd.
VS
Respondent: Varun Resources Ltd.

Judges/Coram:
Hon'ble Sh. B.S.V. Prakash Kumar Member (J)

Counsels:
For Appellant/Petitioner/Plaintiff: Ms. Rathina Maravarman.

For Respondents/Defendant: Mr. Sonu Kapadia.

ORDER

Hon'ble Sh. B.S.V. Prakash Kumar Member (J)

1. Indian Bank filed this Company Petition u/s 7 of The Insolvency and Bankruptcy Code, 2016
against a Corporate Debtor viz. Varun Resources Ltd. on the ground that this Corporate Debtor failed to
repay Z31,28,56,661 along with interest at the rate of 13% per annum and a monthly rest till the payment

of the dues, claiming default date as 1.5.2014. In view thereof, this financial creditor filed this Financial
Creditor application seeking initiation of Corporate Insolvency Resolution Process against the Corporate
Debtor company.

Brief facts of the case:

2. This applicant submits that Varun Shipping Company Ltd (herein after called Varun Shipping)
was primarily engaged in shipping business, in pursuance thereof, this company availed term loan of ?50
crores, vide sanction letter dated 30.6.2010 from the applicant Bank by agreeing that Varun Shipping

would repay the loan in 16 quarterly instalments of 23,12,50,000 commencing after a moratorium period
of 12 months. Apart from the document executed for sanctioning of this loan, Varun Shipping had also

executed a statutory mortgage of their vessel "Maharishi Mahatreya" creating a second charge on the said
vessel in favour of the applicant bank. And then Varun Shipping acknowledged its indebtedness as on
26.6.2013 to be of 228,99,63,706 towards the term loan of 250 crores, now it has become 231,28,56,661.

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