Page 745 - IBC Orders us 7-CA Mukesh Mohan

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

Principal : 1,21,17,752.11
Interest : 37,26,057.82
Penal Interest: 28,68,571.85

Total : 1,87,12,381.78

4. The said financial debt was disbursed by keeping lien on all booked vehicles as a security. A loan
agreement was executed on 08th October, 2013. The Bank had agreed to grant Inventory Funding

Loan for the purpose of vehicles and spare parts by the borrower. The borrower had undertaken to
furnish the personal guarantee of one Mr. Jitendra Jain, as Corporate Guarantee of the
Respondent Company. As per the terms the borrower had undertaken not to pledge, hypothecate

or create any charge in respect of the vehicles and spare parts, except sale of the vehicles in the
ordinary course of business. On 12th July, 2014 parties have again executed a supplemental and a

mandatory loan agreement. A Demand Promissory Note was executed of Rs. 5 crores on 12th
July, 2014. Further a letter of continuity for DP Note so as to remain liable on the said Demand
Promissory Note was also executed on 14th July 2014. The Petition contained statement of

account narrating therein the amount credited and amount debited in the account of the company
and the closing balance as on 1st June 2017 was reflected at Rs. 1,21,17,752. As per the statement
the Petitioner has demonstrated that the Debtor company had defaulted in making the repayment

of the Debt. A notice on or January 2016 under the old provisions section 433 and 434 of
Companies Act, 1956, calling upon the Corporate Debtor to make payment of the outstanding
debt was also issued. As per the said notice the amount was payable on 26th November, 2015

along with interest.
5. Because of the default in repayment, the matter was carried to Debt Recovery Tribunal-II,

Mumbai and vide an order of 24th January, 2017 (Original Application No.88 of 2016) wherein
an interim application was made with a prayer that pending disposal of the main Petition a
direction be given to the defendants to maintain status-quo of the properties. Vide Para-2 of the

said Order, it is recorded that defendant No.1 to 3 of the impugned Petition pending before DRT
are in Arthur Jail in connection with a criminal case registered by the Economic Offence Wing of
Central Bureau of Investigation. It was held by the Learned Presiding Officer, DRT, Mumbai that

status-quo against some of the properties had already been granted, accordingly the interim
application stood disposed of.
6. Facts of the case have revealed that the Debtor had issued a cheque of Rs. 1,33,76,672 on 27th

November 2015 drawn on Saraswat Bank; however, upon presentation on 30" November, 2015,
was dishonoured with a Bank Memo indicating "insufficient funds". The Bank had initiated

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