Page 88 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Principal Bench
29. Mr. S.N. Mukherjee learned Senior counsel on behalf of the respondent has submitted that the

default took place on 29.11.2015 and IBC was enforced w.e.f. 01.12.2016. There were various meetings
held in accordance with the guidelines issued by the Reserve Bank of India which included the
examination of Forensic Audit Report by Deloitte. According to the learned counsel it was the petitioner

itself who informed the Joint Lender Forum with regard to the Forensic Audit Report prepared by the
Deloitte which covers the period of 2012-14 and 2014-16. State Bank of India also informed the

Committee no commission of malfeasance, fraud or siphoning of funds by the respondents could be
established from the Forensic Audit Report. The Joint Lender Forum decided to send a suitable reply to
the Reserve Bank of India. Mr. Mukherjee has also made reference to the meeting with regard to

Corrective Action Plan including S4A i.e. Scheme for Sustainable Structuring of Stressed Assets and the
efforts made in that direction. A reference has been invited to the minutes of high level lenders meet of
the respondent dated 16.03.2016. According to the learned counsel when the solution was well in sight a

decision has been taken on 15.06.2017 by the Reserve Bank of India to issue direction to the petitioner to
initiate process under Section 7 of IBC in the matter of respondent. The submission seems to be that the
decision at the instance of Reserve Bank of India has been taken in a hot haste.

30. Mr. Mukherjee has also submitted that if the computation of the default amount is grossly
incorrect and contrary to the provisions of law then penal action contemplated by Section 75 of IBC

deserves to be invoked. In that regard, he has placed reliance on para 11 to 15 of the judgment rendered
by learned National Company Law Appellate Tribunal in Company Appeal (AT) (Insolvency) No. 5/2017

titled as M/s. Starlog Enterprises Limited v. ICICI Bank Limited and has argued that such like
applications are not only liable to be dismissed but penalty as laid down in Section 75 of IBC deserves to
be imposed. Reliance has also been placed on the observation made in para 83 of the judgment rendered

in the case of M/s. Innoventive Industries Limited v. ICICI Bank & Anr. in Company Appeal (AT)
(Insolvency) No. 1 & 2 of 2017.

31. Ms. Pallavi S. Shroff learned senior counsel for the petitioner has vehemently argued that all
requirements of Section 7 for the initiation of Corporate Insolvency Resolution Process by a Financial
Creditor stand fulfilled. In that regard, she has submitted that the application as prescribed by Rule 4(1) of

the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with Section
7(2) of IBC has been filed with amendments. The Financial Creditor has also given the details of the
merger of associate Banks which have merged with the petitioner-State Bank of India by virtue of the

notification dated 22.02.2017 w.e.f. 01.04.2017. She has further submitted that the details of the default
along with the dates have been clearly stated in part IV along with all the minute details. There is

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