National Company Law Tribunal, Mumbai Bench Sends 'Supreme Housing & Hospitality Private Limited' Into Corporate Insolvency Resolution Process
Syndicate Bank, now Canara Bank, ("Financial Creditor"), filed a petition under section 7 of Insolvency & Bankruptcy Code, 2016 ("Code") against Supreme Housing and Hospitality Private Limited, ("Corporate Debtor"), for initiating Corporate Insolvency Resolution Process ("CIRP") in National Company Law Tribunal, Mumbai Bench ("NCLT"). The Petition is filed claiming an amount of Rs.368,85,54,194.56 as on 31.12.2019 inclusive of interest.
The Corporate Debtor approached the Financial Creditor for grant/sanction of Term Loan on 12.01.2014. The Financial Creditor considered the request of the Corporate Debtor and grant/sanction of Term Loan (LRD) of Rs. 390.00 Crores vide sanction letter dated 29.03.2014 and the said amount was disbursed to the Corporate Debtor on 16.05.2014, which reflects in Statement of Account. The Corporate Debtor secured the Term Loan by executing various loan and security documents in favour of the Financial Creditor.
The Corporate Debtor started committing default in servicing the Term Loan. Despite receipt of Demand Notices u/s 13(2) of the SARFAESI Act, 2002 dated 30.10.2017 and Recall Notice dated 09.01.2018, the Corporate Debtor failed to repay the outstanding dues.
On perusal of records and during the course of arguments, NCLT, Mumbai Bench observed that the Term Loan (LRD) of Rs.390 Crores was disbursed on the Corporate Debtor on 16.05.2014, thus the contention of Corporate Debtor that there is absolutely no outstanding debt due to the Financial Creditor as defined u/s 5(8) of the Code is not sustainable. Furthermore, the only contention of the Corporate Debtor was that the Financial Creditor has not adhered to release the mortgaged property despite the investor "India Bulls Asset Reconstruction Company Limited" being ready to repay the outstanding amount in full. This itself shows that the Corporate Debtor acknowledges the liability due to the Financial Creditor.
In view of the aforesaid observation and since the Petition was complete and has been filed under the proper form and the debt amount was more than Rupees One Crore and default of the Corporate Debtor has been established, vide order dated 23.11.2022, the Hon'ble NCLT Mumbai Bench was pleased to allow C.P. (IB) No. 1397/NCLT/MB/C-IV/2020 filed by Canara Bank and admitted Supreme Housing & Hospitality Private Limited into CIRP.
The Financial Creditor was represented by Mr. Nishit Dhruva, Mr. Prakash Shinde, Mrs Meghna Arvind of MDP and Partners