Alok Srivastava JUDGMENT
V.P. Singh, Member (T)
1. This Appeal emanates from the Impugned Order dated 14th December 2018 passed by the Adjudicating Authority/National Company Law Tribunal, Bengaluru Bench, Bengaluru in Company Petition (I.B.) No. 103/BB/2018, whereby the Adjudicating Authority has admitted the Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'I&B Code'). The Parties are represented by their original status in the Company Petition for the sake of convenience.
2. These brief facts of the case are as follows:
The State Bank of India, Assets Management Branch, Bangalore on behalf of Consortium Banks filed an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (from now on referred to as the 'I&B Code') for initiation of 'Corporate Insolvency Resolution Process' against M/s. Metal Closures Pvt. Ltd. ('Corporate Debtor'). The Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench vide Impugned Order dated 14th December 2018 having admitted the Application, which is challenged by the Appellant, ex-Director of the Corporate Debtor.
3. The case of the Corporate Debtor was that the State Bank of India granted various credit facilities to the 'Corporate Debtor' since 2007. Subsequently, the Corporation Bank started giving credit facilities to the 'Corporate Debtor' since 14th August 2009. On 31st January 2010, the account of the 'Corporate Debtor' was classified as a 'Non-Performing Asset' (hereinafter 'NPA') by State Bank of India. However, it was restructured.
4. The Punjab National Bank entered the Consortium on 26th June 2010 by sanctioning certain facilities to the 'Corporate Debtor'. The UCO Bank also sanctioned Working Capital Cash Credit and Letter of Credit Limit to the 'Corporate Debtor'.
5. According to the Appellant, a Joint Lenders Meeting was held on 28th April 2014 between the Members of the Consortium with the 'Corporate Debtor'. The Minutes also recorded that APITCO (Andhra Pradesh Industrial and Technical Consultancy Organisation), State Bank of India's external consultant had recommended that the working capital limits of the Company be enhanced.
6. Further, the case of the Appellant is that the Consortium entered into a Master Joint Lenders Forum Agreement to deal with the subject account. In the meantime, it was decided that a Concurrent Auditor be appointed.
7. The account of 'Corporate Debtor' was declared to be an NPA by the State Bank of India on 28th May 2014. The Punjab National Bank also declared the account of 'Corporate Debtor' as NPA on 30th June 2014. Later on the Deputy General Manager, State Bank of India, given the failure of restructuring, requested that the date of NPA of the 'Corporate Debtor' be changed to 31st January 2010, which was approved on 10th July 2014.
8. The Appellant further contends that the State Bank of India issued a notice under Section 13(2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (from now on referred to as the 'SARAFAESI Act') on 12th August 2014, calling upon the 'Corporate Debtor' to repay a sum of Rs. 71,27,47,889/-. The Corporation Bank also declared the account of the 'Corporate Debtor' as 'Non-Performing Asset' on 10th October 2014.
9. The Appellant submits that the UCO Bank also declared the account of 'Corpor........