Page 84 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Principal Bench

17. A further reference has been made to the Master Circular dated 01.07.2015 which deals with
classification of asset as NPA if interest and/or instalment of principal remained overdue for a period of

more than 90 days in respect of a term loan than it has to be treated as NPA. Thus, the total NPA of the
Corporate Debtor was much less than 60% as on 31.03.2016. Accordingly, it has been claimed that no
Insolvency and Bankruptcy process could have been initiated.

18. Respondent has further submitted that the Financial Creditor was required to give the Corporate
Debtor a period of six months to work out a resolution plan as per the press release issued by the Reserve

Bank of India vide circular dated 05.05.2017 titled as "Timelines for Stressed Assets Resolution". It was
clarified that the lenders must adhere to timeliness for implementation of Corrective Action Plan (CAP)

(including S4A i.e. Scheme for Sustainable Structuring of Stressed Assets dated 13.06.2016). The
decision agreed upon by a minimum of 60% of creditors by value and 50% of creditors by number in the
Joint Lenders Forum would be considered as the basis for deciding Corrective Action Plan (CAP), and

will be binding on all lenders. The petition has extracted the circular issued in May 2017 (CD3). It is
claimed that Joint Lender Forum led by the applicant itself was actively considering restructuring of the
debt of the borrower under Scheme of sustainable structuring of stressed assets (S4A) and the Financial

Creditor was obliged to implement the same vis-a-vis the Corporate Debtor.

19. It has then we asserted that the application lacks in material particulars and the amounts claimed

are not substantiated. A reference has been made highlighting the discrepancies in material particulars
which are as under:-

(a) The Application lacks material particulars and the amounts claimed are unsubstantiated

(i) The Applicant in Part IV, Sr. No. 2 of the Application/Form 1 has claimed an amount of Rs.

4390,75,41,611 for the Indian Rupee Loans and US$ 49,684,877 towards foreign currency loans, are in
default details whereof have been sought to be provided in Annexure 7 to the Application. While the
Application/Form 1 does not mention the period of alleged default, Annexure-7 states "Details of default

as on 30 June 2017". Mandatory evidence to corroborate the claims made in Annexure 7 is however not
provided by the Applicant.

(ii) Part V, Sr. Nos. 6 and 7 of the Application, refer to record of default (Annexure 11) and detailed
account statements (Annexure 12). Annexure-11 provides "Report on Exposure to a Borrower" with

31.03.2017 as the quarter in reference. The account statements provided in Annexure-12, on the other

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