Vikram Bhawanishankar Sharma Vs Union Bank of India & Anr (NCLAT Delhi)
NCLAT Delhi held that termination of concession agreement has no relation with default in repayment of dues of the Financial creditor. Accordingly, application u/s. 7 of IBC rightly admitted against Supreme Manor Wada Bhiwandi Infrastructure Pvt. Ltd. [Corporate Debtor] as debt and default established.
Facts- This appeal is filed by the suspended director of the Corporate Debtor (CD) to challenge the order dated 19.05.2023 filed by the Financial Creditor (Union Bank of India) u/s. 7 of the Insolvency and Bankruptcy Code, 2016 for initiation of the Corporate Insolvency Resolution Process against Supreme Manor Wada Bhiwandi Infrastructure Pvt. Ltd. (CD), has been admitted by the NCLT, Mumbai Bench and Sudip Bhatacharya was appointed as the Interim Resolution Professional (IRP).
Conclusion- In so far as the facilities are concerned, the CD has not denied the same. The CD has also acknowledged the debt which is evident from the revival letter dated 22.01.2018 which was addressed not only to the FC (Lender) but to all the lenders. The default is also proved because the account of the CD was declared as NPA in November, 2016 itself. The debt has also been proved from the balance sheet of the CD in the FY 2016-17. Once, the debt and default has been duly proved, the Tribunal has to admit the petition as has been held by the Hon’ble Supreme Court in the case of Innoventive Industries.
