Deepa Krishan JUDGMENT
M.M. Kumar, C.J. (President)
1. The 'Financial Creditor'-Central Bank of India has filed the instant application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code') with a prayer to
trigger the Corporate Insolvency Resolution Process in the matter of NCML Industries Limited. It is appropriate to mention that the 'financial creditor' is a body corporate constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (for brevity 'Banking Companies Act'). The 'financial creditor' had its head office at Chandermukhi, Nariman Point, Mumbai-400021. The identification number of the financial creditor is BSR Code 283869 and its branch office is at Mid Corporate Finance Branch, GF (Right Wing), Link House, 3, Bahadur Shah Zafar Marg, New Delhi-110002.
2. Mr. Ashwani Kumar Arora has been authorized by the power of attorney dated 08.09.2016 (Annexure-A1) to sign and submit the petition.
3. The Corporate Debtor-NCML Industries Limited was incorporated on 26.09.1996. The identification number of the Corporate Debtor is U65923BL1996PLC082284 and its registered office is situated at 1818, Naya Bazar, New Delhi-110006. Its authorised share capital is Rs. 23,55,00,000/- (Rupees Twenty three crores fifty five lacs) and the paid up share capital is Rs. 23,54,85,000/- (Rupees Twenty three crores fifty four lacs eighty five thousand) as per details of guarantee clause as well as Memorandum of Association.
4. In the application, the Financial Creditor has given the details of financial debt granted to the 'Corporate Debtor' with the dates of disbursement. A perusal of part IV of the application has highlighted the following particulars of financial debt:
The aforesaid details would show that fresh working capital limit (FLC) of Rs. 40 crores was extended to the Corporate Debtor on 17.09.2012 and subsequently it was renewed. Further debt was granted upon review-cum-enhancement proposal whereby FLC limit was increased to Rs. 50 crores on 13.11.2013 and fresh limit as CC (Hypothecation) for a sum of Rs. 7 crores was granted. The details concerning dates of disbursement under the aforesaid facilities have been annexed (Annexure A-2).
5. As per the averments of the 'Financial Creditor', the principal amount in default under CC (Hypothecation) limit as on 25.07.2017 is claimed to be Rs. 9,93,34,797 (Rupees nine crores ninety three lacs thirty four thousand seven hundred and ninety seven). In addition, the default amount towards LC development as on 25.07.2017 is claimed to be Rs. 47,03,02,370 (Rupees forty seven crores three lacs two thousand three hundred seventy). A copy of computation of amount of default and date of default has been placed on record (Annexure A-3).
6. The 'financial creditor' has placed on record an overwhelming evidence to prove the amount advanced and secured by Corporate guarantees. The details of the security held by, or created for the benefit of 'financial creditor'- Central Bank of India have been given in Part V which are set out below:-
"CC (Hypothecation) facility granted by Central Bank of India, Mid Corporate Finance Branch, 3, Bahadur Shah Zafar Marg, New Delhi-110002
First charge shared pari passu amongst the Lenders, (including the Forward contract limit on the Lenders as per their respective Sanction Letter, outside the consortium limit) over the entire current assets of the Company ........