Page 818 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT New Delhi-II Bench
Asset on 31.05.2013. As per the statement of account maintained by the Bank in their normal, course of

their business, a sum of Rs. 333.80 crores is due and payable to them by the Corporate Debtor.

3. The aforesaid facility for grant of financial assistance been extended from time to tone. To enable the

Corporate Debtor avail this facility, a charge was created over its movable assets, both present and future.
Corporate guarantees of M/s. AIP Private Limited, Athena Energy Ventures Pvt. Ltd. and Athena Infra
projects Ltd. were accepted by way of pledge of their shares as collateral security and all terms and

conditions of disbursement were duly accepted by the Corporate Debtor. Various other agreements for
extending the financial assistance by way of Medium Term and Bridge loans were executed. However, as

the Corporate Debtor failed to adhere to any financial discipline in regularising the account and/or
reducing the liabilities, its accounts were rendered and classified as performing assets. Unable to wait any
longer for realisation of the dues, the Lender Bank has instituted the present petition seeking resolution of

the Corporate Debtor. This is notwithstanding the fact that they have also initiated the recoveries under
Section 19 of Recovery of Debt before the Debt Recovery Tribunal-1.

4. The Financial Creditor has placed on record the audited reports of the Corporate Debtor.

5. The Respondent on being served, has not disputed their outstanding liability towards the Applicant

Bank. I, has only submitted that for reasons beyond its control, on account of various requirements by the
different departments of the Government, the project has stagnated for such a long period and has failed
to take off. Despite the constant efforts made by all stake holders to implement the project which is of

national and strategic importance, the project has been embroiled in various litigations and hurdles
created in getting clearances. After relentlessly pursuing for clearances, including steps for acquisition of
land, they finally hope to get a green signal from the National Green Tribunal to cut the trees over the

land and get the project rolling.

6. The Corporate Debtor had availed the financial assistance to implement a 1750 MW power generating

project in district Lohit, Arunachal Pradesh, as a joint venture project of the Government of Arunachal
Pradesh which has 6% equity in the project. It is their case that ever since the contract for the project was

awarded to them, a constant endeavor has been made to set it up and they have now achieved significant
progress, having obtained requisite permits and clearances, acquired the required private land, tying up
finances for the project including raising debt and equity, but for reasons beyond their control, like

prolonged litigation, economic slow-down, delay in granting clearances by the Ministry of Environment
and Forests, the financial closure of the project could not be achieved. New promoters and investors have
been brought in with the consent of the Government of Arunachal Pradesh and initiation of any resolution

process shall adversely hit the interests of stake holder, including that of the financial creditor whose

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