Page 819 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
By Hon’ble NCLT New Delhi-II Bench

repayment of debt is undertaken to be liquidated or at least reduced. Ld. Counsel for the Corporate Debtor

has argued that various slops have been taken by the Reserve Bank of India from time to time to revitalize
suchlike distressed assets in the economy, one of these being a unanimous decision taken by the Joint
Lenders Forum of Banks who have sanctioned their loans and have a corrective action plan in place. It is
submitted that in view of the discussions and deliberations made amongst the lenders of the project in the

meetings held in October. 2015 and June 2016, the project was supposed to achieve a timely financial
closure and repayment of the short-term loan to the financial creditor was to be made from the first

disbursement of the long term loan. The long-term loans, though sanctioned, were to be disbursed only
upon the project being implemented. Ld. Counsel for the Corporate Debtor submits that the efforts are on-
going with the other tenders, but in view of non-revalidation of the sanctioned loan even after it was

agreed for by the financial creditor, the delay in financial closure of the project is beyond their control.

The decision of the Joint Lenders Meeting held on 3rd June, 2016 to work forward has been relied

upon by the Ld. Counsel for the Corporate Debtor, which includes, inter-alia:-

The short-term loan may be repaid out of first disbursement under long term loan facility

subject to

(i) waiver of penal interest and netting of such penal interest paid in past from current

outstanding interests dues,

(ii) Hold all the recovery proceedings till 31-Dec-2016,

(iii) Indian Bank agrees to participate in its pro-rata share in Senior Debt.

7. It is argued that in the Joint Lenders Forum of the Banks which also includes the Financial Creditor
herein, it was unanimously agreed not to proceed against the Corporate Debtor. It is also submitted that
the Financial Creditor is now retracting from its undertaking given before the joint Lenders Forum

wherein it was decided that its loans would be liquidated as per the scheme envisaged. The Ld. Counsel
has further emphasized that as the short-term loan was agreed to be liquidated out of the proceeds granted

under the long term financial assistance from the joint lenders, the recall of the loan by the Financial
Creditor is premature.

8. On behalf of the Corporate Debtor, Ld. Counsel further submits that the last major hurdle in causing
delay for implementation of the project is a stay order on the cutting of trees by the Hon'ble National
Green Tribunal, all other regulatory and statutory approvals having been received. They are optimistic in

obtaining the same shortly as the judgment/order is reserved. It is pointed out that an investment of over

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