Page 820 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT New Delhi-II Bench
several hundred crores has already been made by them in the project and land has been acquired for

setting up the power generating system which is of national importance and any resolution plan intended
at this stage would be to the detriment of the nation and the various stake holders. It is also asserted that
the decision of the applicant Bank to initiate the present proceedings is in gross violation of the guidelines

set up by the Banking Regulator i.e. the RBI applicable to cases involving delay on grounds of litigation
and other extraneous reasons like Govt. Approvals etc. All these factors which are beyond the control of

promoters and have resulted in delay in the project implementation, necessitate restructuring and
rescheduling of the loans by the Banks. Ld. Counsel for the Respondent Corporate Debtor rests his
arguments on grounds that there is no default as the short term loan had to be Liquidated from the

disbursement of the Long Term Loan, which has not been re-sanctioned/disbursed.

9. Per contra. Ld. Counsel for the Financial Creditor submits that various opportunities have already been

given to the Corporate Debtor by way of extension and restructuring of the loan facility. It is also
submitted that apart from Corporation Bank, the petitioner is the only bank to have granted financial
assistance and therefore there was no Joint Lenders' Forum, as none of the other Banks have actually

disbursed any financial assistance and have no stake in recovery. The question of any decision taken by
the alleged Join, Lenders Forum was therefore unsustainable and they are not bound by the same. The
other banks had agreed to disburse financial assistance only once the project was implemented. The

Petitioner Bank has waited for far too long and submits that the situation calls for resolution of the
Corporate Debtor either for a turn around and proper implementation or to face liquidation.

10. Given the situation, we are of the opinion that any decision made by the Joint Lenders Forum is not
binding on the Financial Creditor, as the members have not disbursed any financial assistance. The

Corporate Debtor therefore cannot seek to take refuge under then resolutions in order to avoid an
Insolvency Resolution process, nor can they resist the Financial Creditors entitlement for recovery under
the Code on the basis of some underlying motive, supposedly resulting in some economic detriment or

prejudice to national interests, as perceived by them. The correct recognition of National Interest is
adherence to the rule of law impartially applicable without exceptions to one and all.

11. The factum of an outstanding amount is admitted by the Corporate Debtor. Their inability to pay
mandates Corporate Insolvency Resolution Process. This petition is, therefore, Admitted. The moratorium
envisaged under Section 14 of the Code come into immediate effect.

Section 14:

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