Page 810 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT New Delhi-II Bench
Applicant Bank has been placed on record at Annex I-F. Subsequently on the request of Corporate Debtor

Company Applicant Bank again approved fresh combined ILC/FLC (DA/DP)/LG limit of Rs. 10.00
Crore for procurement of parts, accessories, consumables, capital goods to be sourced from national as
well international vendors and LG limit for furnishing guarantees in the normal course of business

workable within sanctioned term loan of Rs. 170 Crore. Another sanction letter dated 03.08.2009 in this
respect has been placed on record and marked as Annex I-G.

5. It is further submitted that the respondent company accepted the terms and conditions of aforesaid loan
facilities by putting signature of directors with company seal on the sanction letters. That apart the

corporate debtor through its Director authorized by board resolution of the Company, had signed and
executed the following documents after understanding the Terms and Conditions contained therein:

a. Hypothecation of Assets to secure Term Loan Agreement dated 21.11.2009 (Annex I-H)

b. Hypothecation of current Assets Agreement dated 21.11.2009

(Annex I-I)

c. Hypothecation of Moveable Assets forming part of fixed/block assets Agreement dated 21.11.2009

(Annex I-J)

d. Deed of Hypothecation to secure LC on DA/DP Basis dated 21.11.2009 (Annex I-K)

e. Counter Indemnity dated 21.11.2009 (Annex I-L)

f. Undertakings dated 21.11.2009 (Annex I-M)

6. In addition, the credit facility was secured by continuing guarantee dated 24.04.2010 of M/s. Carnation

Reality Pvt. Ltd. who also created mortgage by deposit of title deeds on 24.04.2010 in respect of the
properties reflected at para 9 of the application. In respect of the security documents executed by the
company, charge was registered with ROC under the provisions of the Companies Act, 1956. The

relevant certificate of registration of charge is at Annexure 1-P.

7. It is stated that the Corporate Debtor was unable to keep up repayment of Term Loan as well as interest

as agreed in terms of the term loan agreement and approached the Financial Creditor for restructuring of
credit facility by way of deferment of instalments of Term Loan installment by 2 years and sanction of
FITL (Funded Interest Term Loan) for interest amount for 2 years from 1.06.2013 for the financial year

201344 & 2014-15 and to be repaid from 2015-16.

810