Page 86 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Principal Bench
working capital has been disbursed vide working capital consortium agreement dated 2 March 2015.....for

the purposes of providing working capital to the corporate debtor upto a limit of Rs. 12,459 Crores. The
accounts for the said facility are running accounts with disbursals on a regular basis and the details for the
same are reflected in the statement of accounts for the accounts maintained with respect to the working

capital consortium agreement dated 2 March 2015...."

21. It is thus admitted and undisputed position that the working capital accounts are running

accounts, where the obligation of the borrower is limited to payment of interest only unless the facility
has been closed or recalled. No such action has even been considered in the instant case. It is also relevant

to note that the consortium of lenders under JLF in their meeting dated 16.03.2016 had approved
"Holding on operations", which means that the accounts of the borrower are not to be freezed or recalled
and allowed to be continued for smooth running of operations, which aspect continued to be recorded as

late as 08.06.2017, the date on which the meeting of Steering Committee of Lenders was held. Pertinently
the holding on operations were never discontinued by the lenders including the Applicant.

Copy of the minutes of the meetings of the JLF dated 16.03.2016 and meeting of Steering Committee
dated 08.06.2017 have been placed on record (Annexures CD-11 and CD-19 marked in paras 16(f) and
16(q) respectively below).

22. A tabular representation of the error in treatment i.e. clubbing of working capital accounts as
default amount is provided hereunder:

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