NCLT admits RBI application for initiating CIRP against Srei Infra

Reserve Bank of India Vs Srei Infrastructure Finance Limited (NCLT Kolkata)

1. The Court convened via video conferencing.

2. This is an application filed by the Reserve Bank of India (Appropriate Regulator) under section 227 read with section 239(2(zk) of the Insolvency and Bankruptcy Code, 2016 (in short “IBC”) for initiations of Corporate Insolvency Resolution Process (in short “CIRP”) against Srei Infrastructure Finance Limited (in short “SIFL”), the Financial Service Provider.

3. The respondent/Financial Service Providers (in short “FSP”) is a company registered under the Companies Act, 1956, having CIN: L29219WB1985PLC­055352, and registered with the Registrar of Companies, West Bengal, Kolkata. Therefore, this Bench has jurisdiction to deal with the present petition.

4. Sudipto Sarkar, Learned Senior Counsel appearing on behalf of the Petitioner/Appropriate Regulator submits as follows :-

(a) On the basis of credit information available to it, the Reserve Bank of India (in short “RBI”) came to the conclusion that SIFL has committed defaults of significant amount in relation to the financial debt availed by it from various financial creditors;

(b) In particular, UCO Bank has intimated vide its letter dated 07/10/2021 that the amount claimed to be in default in relation to working capital demand loan facility is ₹165,56,30,967.99. Of this the principal amount due is to the tune of ₹150.00 crore and the interest amount due is to the tune of ₹15,56,30,967.99.

(c) Date of default with reference to repayment of principal sum is stated to be 13/02/2021. The default with reference to the interest amount is stated to be 01/11/2020. During the course of hearing, Mr. Sudipto Sarkar, Learned Senior Counsel submitted that this was the earliest date of default, and that there are continuing defaults since then.

5. The supporting documents submitted by the UCO Bank to RBI have been made part of the record as Annexure “B” to the petition at pages 21-101 of the petition. The communication dated 07/10/202 1 from UCO Bank contains the following: