Axis Bank Limited vs M/s. Krishna Ganga Spinning Mills Private Limited

FACTS OF THE CASE:

COUNTER BY THE CORPORATE DEBTOR:

"...the Central Government hereby notifies following persons, who may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority, on behalf of the financial creditor:

(i)

a guardian;

(ii)

an executor or administrator of an estate of a financial creditor;

(iii)

a trustee (including a debenture trustee); and

(iv)

a person duly authorized by the Board of Directors of Company."

"31.

As per Section 7 of the 'I&B Code' an application for initiation of 'Corporate Insolvency Resolution Process' requires to be filed by 'Financial Creditor' itself. The form and manner, in which an application under section 7 of the 'I&B Code' is to be filed by a 'Financial Creditor' is provided in 'Form-1' of the Adjudicating Authority Rules. Upon perusal of the Adjudicating Authority Rules and Form-1, it may be duly noted that the 'I&B Code' and the Adjudicating Authority Rules recognize that a 'Financial Creditor' being a juristic person can only act through an "Authorised Representative". Entry 5 & 6 (Part I) of Form No.1 mandates the 'Financial Creditor' to submit "name and address of the person authorised to submit application on its behalf. The authorization letter is to be enclosed. The signature block of the aforementioned Form 1 also provides for the authorised person's detail is to be inserted and also includes inter alia the position of the authorised person in relation to the 'Financial Creditor'. Thus, it is clear that only an "authorised person" as distinct from "Power of Attorney Holder" can make an application under section 7 and required to state his position in relation to "Financial Creditor".

32.

The 'I&B Code' is a complete Code by itself. The provision of the Power of Attorney Act, 1882 cannot override the specific provision of a statute, which requires that a particular act should be done by a person in the manner as prescribed thereunder.

33.

Therefore, we hold that a 'Power of Attorney Holder' is not competent to file an application on behalf of a 'Financial Creditor' or 'Operational Creditor' or 'Corporate Applicant'."

"16.

That apart, the ruling in re, Rajendra Narottamdas Sheth (supra), also establishes that whenever a petition under section 7 IBC is filed by a power of attorney holder, the requirement that such a power of attorney shall be accompanied by a duly passed “Board Resolution” is not a mere a “technicality” but mandatory legal requirement, as the noncompliance of which renders the said agent of such power of attorney incompetent to file an application under section 7 of IBC. xxxx xxxxx xxxx

18.

We, therefore, in the light of our discussions as above are unhesitant, to hold that the present Company Petition signed and verified by Mr. Raghuram Moguluru, the agent/ power of attorney holder, which power was not backed by the Board Resolution, is not maintainable.”

IA (IBC)/428/2025:

"The Board may subject to the Provisions of the Act delegate any of its powers to committees consisting of such member or members of its body as it thinks fit. Any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Board."

ANALYSIS AND FINDINGS:

71

•

The Board may subject to the provisions of the Act delegate any of its powers to committees consisting of such member or members of its body as it thinks fit. Any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Board.

CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE BOARD MEETING OF AXIS BANK LIMITED HELD ON THURSDAY, OCTOBER 20, 2022 FROM 11.15 A.M. UPTO 6.40 P.M. WHICH CONTINUED ON FRIDAY, OCTOBER 21, 2022 FROM 9.30 A.M. UP TO 4.20 P.M. AT AXIS HOUSE, C-2, WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025

AMENDMENT TO THE CHARTERS OF THE BOARD COMMITTEES

"RESOLVED THAT the amendments to the Charter of the Committee of Whole Time Directors of the Bank formulated and adopted by the Bank in terms of the relevant provisions of the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Banking Regulation Act, 1949 and the Rules, Regulations and Guidelines issued thereunder, as amended, from time to time, as set out in the Note dated October 19, 2022, be and is hereby approved AND THAT the revised Charter of the Committee of Whole-time Directors of the Bank, shall be effective from October 20, 2022."

f)

Issuance of General/Special Power of Attorney to various officials of the Bank and the Subsidiary Companies of the Bank to do such acts, deeds, matters and things as may be considered necessary or appropriate for and on behalf of the Bank;

CERTIFIED TRUE COPY OF THE EXTRACT FROM MINUTES OF THE MEETING OF COMMITTEE OF WHOLE-TIME DIRECTORS OF AXIS BANK LIMITED HELD ON AUGUST 29, 2023

ISSUANCE OF POWER OF ATTORNEY TO VARIOUS OFFICIALS OF THE BANK.

The Senior Vice President II & Head - Branch Banking Operations of the Bank submitted a note dated August 9, 2023 proposing issuance of 130 Power of Attorneys (117 GPOAs & 13 SPOAs) in favor of the officers of the Bank.

The Committee was briefed that the Bank issues General Powers of Attorney (GPOA) to designated officials to enable them to act on behalf of the Bank. A GPOA is an all-encompassing document authorizing the appointee with broad powers (e.g. endorse, negotiate, discharge negotiable instruments, make payments, insure Bank's properties, appear in courts of law, to open Bank accounts for clearing and other purposes, to sign, endorse, transfer documents creating various charges in favour of the Bank, issue LCs/BGs etc.).

Also, the Bank grants a special or limited power of attorney which gives restricted powers to the appointee officials to discharge duties in the conduct of business of the Bank and exercise powers pertaining to their office for the purposes given in the Special Power of Attorney.

It was proposed to grant GPOAs and SPOAs to officials of the Bank.

The Committee reviewed the said proposal, and then approved and passed the following resolution unanimously:

"RESOLVED THAT General Power of Attorney be issued in favor of the following officials of the Bank with immediate effect:

Sr N o.	Poa Type	Emp. No	Name	Branch	Desi gna tion

XXXXXXXXXXXXXX

56

GPOA

22134

V Naveen Kumar Juluru

WBO:MWBC-WB Service Relationship Manager

AVP

XXXXXXXXXXXXXX

RESOLVED FURTHER THAT the Company Secretary is hereby authorized to act as the constituted Attorney of the Bank and execute the POAs on behalf of the Bank."

Thereafter, the Chairman summarized the discussions that took place on issuance of power of attorney to the officials of the Bank.

AXIS BANK LIMITED

REGISTERED OFFICE AHMEDABAD

POWER OF ATTORNEY

To all to whom these presents shall come, AXIS BANK LTD., a Banking Company incorporated under the Companies Act, 1956, having their Registered Office at "Trishul"-3rd Floor, Opp. Samartheswar Temple, Near Law Garden, Ellisbridge, Ahmedabad- 380006 (hereinafter called the 'Bank') send greetings :

Whereas Shri/Smt/Kumari V NAVEEN KUMAR TULURU (Emp. No. 22134) is presently ASSISTANT VICE PRESIDENT of the Bank and the Bank in order to enable him/her to discharge his/her duties better and exercise the powers belonging to his/her office and otherwise is desirous of appointing him/her their Attorney for the purposes hereinafter mentioned and granting to him/her the powers and authorities hereinafter specified.

Now Know ye and these presents witness that the Bank DOTH HEREBY NOMINATE, CONSTITUTE (AND) APPOINT the said Shri/Smt/Kumari V NAVEEN KUMAR TO their true and lawful Attorney to do and transact the acts, deeds, matters and things hereinafter mentioned, provided always that each of the acts, deeds, matters and things be done or performed singly or jointly as hereinafter mentioned, that is to say:

SINGLY to do all or any of the following acts, deeds, matters or things, viz:

XXXXXXXXXXXXXX

8A. In respect of any person, firm, society, company, corporation, association, syndicate or body corporate to apply or petition for adjudication as insolvent or bankrupt or for winding up and prove any debt or claim in the bankruptcy or insolvency or winding up and to take any proceedings and appear or cause an appearance to be entered for the Bank in any proceeding for or in or after any such bankruptcy or insolvency or any winding up and to make, sign, verify, affirm, swear, declare and file any petition, affidavit, declaration, application or other claim or affidavit in proof of any debt due or claimed to be due to the Bank and to attend and vote or to give a proxy to or authorise any employee or employees of the Bank or any other person to attend and vote at any meeting of creditors in any composition or in any insolvency or bankruptcy or winding up proceedings and to propose, second or vote for or against any resolution or resolutions at any such meeting and to appear at any public examination or any application for discharge and to vote and/ or to take part in appointment of any inspector, trustee or liquidator or receiver or committee and generally to act for the Bank in all insolvency or bankruptcy or winding up proceedings or authorise any employees of the Bank or any other person to so act in the premises.

8B. To sign, verify and execute vakalatnama, applications, forms, written statements, reply, objections, claims and counter-claims of any nature and value, complaints, petitions, appeals, reviews, challenges, consents, affidavits, and all other papers and proceedings of any nature and all description that may be necessary to be signed, verified, deposed for the purposes of initiating, conducting or withdrawal of corporate insolvency resolution proceedings prescribed under the Insolvency and Bankruptcy Code 2016 read with relevant Rules and Regulations as may be amended from time to time.

8C. To undertake the following on behalf of the Bank pursuant to the Insolvency and Bankruptcy Code 2016 read with the relevant Rules and Regulations as may be amended from time to time:

(I)

Participate in the meetings of the committee/ sub-committee/core committee of creditors and vote at such meetings.

(ii)

To perform such other acts as may be required or necessary to complete all the formalities prescribed under the Insolvency and Bankruptcy Code 2016 read with relevant rules and regulations, as may be amended, from time to time.

9.

To accept service of any writ, summons or other legal process (whether under or without protest) and to appear (whether under or without protest) and represent the Bank in any Court or Tribunal and before all magistrates or judicial or other officers whatsoever as by the Attorney shall be thought advisable and for the Bank in its name or otherwise to commence and prosecute or defend any actions, suits, petitions or other legal proceedings whether civil and/ or criminal in any court or Tribunal concerning any debt, dues, claim or demand or any right, title, interest, property, claim, matter or thing now or hereafter due or owing or payable or in anywise belonging to or recoverable or receivable by the Bank and/or affecting the Bank in any manner whatsoever by any means or any account whatsoever and to sign appearances, vakalatnamas, mukhtiaranamas or other authorities in favour of and/or retain, pay and employ counsels, advocates, solicitors, pleaders or other legal practitioners to act, appear and/ or plead on behalf of the Bank in any such actions, suits, petitions of other legal proceedings and to sign, swear, declare, affirm, verify and file all warrants, petitions, plaints, written statements, counter-claims, set-off, affidavits, applications and all other pleadings and the same action, suit, petition or other legal proceedings to prosecute or defend or settle or adjust or withdraw or compromise or compound or refer to arbitration or discontinue or allow to become non-suit if he the Attorney shall think fit to do so and to file appeals, cross-appeals, objections, cross-objections, application in reference, review or revision from any determination, decision, sentence, judgement, decree or order, whether final or interlocutory, in any such action, suit, petition or other legal proceeding and to sign, swear, declare, affirm and verify all necessary petitions, memoranda or applications for the same purposes and to allow to become non-suit or withdraw any civil action, suit or other legal proceedings and to compound or withdraw (so far as permitted by the law and Bank's internal guidelines/approvals) any criminal proceedings and also to take such other lawful ways and means for the recovering or getting in any such sum of money or actionable claim or other property (moveable or immoveable) or thing whatsoever which shall by the Attorney be conceived to be due, owing, belonging or payable to the Bank by any person whomsoever and howsoever or affecting the Bank in any manner and to satisfy any decree or order passed against the Bank or to enforce and take proceeding in execution (by any mode permissible) of any judgement, decree or order in favour of the Bank in such manner as the Attorney may deem fit and to apply for issue of insolvency or bankruptcy notices and to pay court fees, costs, poundings and Sheriff's fees and receive refund or payment or repayment thereof and to pay into court and to remove out of Court any moneys paid into or receivable out of Court and sign and enter satisfaction of any decree or order in whole or in part and to pay or receive all or any costs of any such action, suit, petition or other legal proceedings and to make any payment under or without protest.

Total default amount: Rs. 34,07,53,683/-

Days of default: 148

Days of default have been calculated from:

Date of NPA: 23.11.2024

The copy of interest calculation sheet depicting the total default amount is annexed herewith and marked as Annexure - A/3

Date on which default occurred : 23.11.2024 (As per NESL)

PISA/62.16 1/4/2014 in C.m. 2014 in G. Int. 2014 in E. P. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014 in E. 1/4/2014

Record of default created with the NeSL

NATIONAL E-GOVERNANCE SERVICES LIMITED

FORM D RECORD OF DEFAULT(RoD)

(Issued By information utility under sub-regulation (4) of regulation 21 of the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017)

This Record of Default is issued to the Financial Creditor M/s AXIS BANK LIMITED in respect of the default of debt as per details given below-

(a) Name of the Submitter:	M/s AXIS BANK LIMITED
(b) Schedule-2 Bank (Y/N):	Y
(c) Name of Corporate Debtor:	M/s KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED
(d) Unique Debt Identifier Number:	AAACU2414K_921030054955997
(e) Registered Address:	Asis House,C-2,Wadia International Centre,Pandurang Budhkar Marg,Worli,Mumbai
(f) Total Outstanding Amount:	INR 250597298.00
(g) Default Amount:	INR 250597298.00
(h) Submission ID:	35
(i) Date of Default:	23-11-2024
(j) Status of Authentication of Default:	AUTHENTICATED
(k) Authentication Completed on:	31-03-2025 00:04:40
(l) Date of Last Acknowledgement of Debt (AoD):	Not Available

* where dispute is pertaining to non-financial information and financial creditor is schedule II bank, the status of authentication will be recorded as Authenticated

NeSL is authorized to issue this record of default and has accordingly affixed its digital signature, as per the provisions of the Insolvency and Bankruptcy Code, 2016 read with Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017, Guidelines for Technical Standards for Performance of Core Services and Other Services and the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2017.

NeSL

India's First Information Utility

NATIONAL E-GOVERNANCE SERVICES LIMITED

FORM D

RECORD OF DEFAULT(ReD)

(Issued By information utility under sub- regulation (4) of regulation 21 of the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017)

This Record of Default is issued to the Financial Creditor M/s AXIS BANK LIMITED in respect of the default of debt as per details given below-

(a) Name of the Submitter:	M/s AXIS BANK LIMITED
(b) Schedule-2 Bank (Y/N):	Y
(c) Name of Corporate Debtor:	M/s KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED
(d) Unique Debt Identifier Number:	AAACU2414K_921060057856656
(e) Registered Address:	Axis House,C-2,Wadia International Centre,Pandurang Budhkar Marg,Worli,Mumbai
(f) Total Outstanding Amount:	INR 11531.00
(g) Default Amount:	INR 11531.00
(h) Submission ID:	35
(i) Date of Default:	23-11-2024
(j) Status of Authentication of Default:	AUTHENTICATED
(k) Authentication Completed on:	31-03-2025 00:04:40
(l) Date of Last Acknowledgement of Debt (AoD):	Not Available

* where dispute is pertaining to non-financial information and financial creditor is schedule II bank, the status of authentication will be recorded as Authenticated

NeSL is authorized to issue this record of default and has accordingly affixed its digital signature, as per the provisions of the Insolvency and Bankruptcy Code, 2016 read with Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017, Guidelines for Technical Standards for Performance of Core Services and Other Services and the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2017.

NeSL

India's First Information Utility

NATIONAL E-GOVERNANCE SERVICES LIMITED

FORM D

RECORD OF DEFAULT(ReD)

(Issued By information utility under sub- regulation (4) of regulation 21 of the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017)

This Record of Default is issued to the Financial Creditor M/s AXIS BANK LIMITED in respect of the default of debt as per details given below-

(a) Name of the Submitter:	M/s AXIS BANK LIMITED
(b) Schedule-2 Bank (Y/N):	Y
(c) Name of Corporate Debtor:	M/s KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED
(d) Unique Debt Identifier Number:	AAACU2414K_921060057856643
(e) Registered Address:	Axis House,C-2,Wadia International Centre,Pandurang Budhkar Marg,Worli,Mumbai
(f) Total Outstanding Amount:	INR 59121981.00
(g) Default Amount:	INR 59121981.00
(h) Submission ID:	32
(i) Date of Default:	23-11-2024
(j) Status of Authentication of Default:	AUTHENTICATED
(k) Authentication Completed on:	31-03-2025 00:04:40
(l) Date of Last Acknowledgement of Debt (AoD):	Not Available

* where dispute is pertaining to non-financial information and financial creditor is schedule II bank, the status of authentication will be recorded as Authenticated

NeSL is authorized to issue this record of default and has accordingly affixed its digital signature, as per the provisions of the Insolvency and Bankruptcy Code, 2016 read with Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017, Guidelines for Technical Standards for Performance of Core Services and Other Services and the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2017.

Copy of the CIBIL report

XXXXXX

Entries in the Banker's Book as per Banker's Book of Evidence Act, 1891

CERTIFICATE UNDER SECTION 2A (A) OF THE BANKER'S BOOK OF EVIDENCE ACT 1981

This is to certify that the statement of accounts (Account Nos. 921030054955997, 921060057856643, 921060057856656 & 922060050621762 of M/s Krishna Ganga Spinning Mills Private Limited for the period from 01.04.2021 to 05.03.2025 of Asis Bank Limited, Lakshmipuram Branch, Guntur, where the account of the said borrower is maintained in the ordinary business of the Bank and is kept in a written form or as printouts of data stored in a hard disk and is a printout of such entry / copy of printout of such entry.

For AXIS BANK LTD.

C Suresh Pai

Place: Chennai

Date: 19-06-2025

[Name of the Signatory]

Assistant Vice President

AXIS BANK

ANNEXURE

- A/6

232

KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED

Joint Holder: --

GT ROAD THINMAPURAM

GUNTUR

GUNTUR

GUNTUR

ANDHRA PRADESH

522233

Customer No: 510696218

Scheme: OPEN CASH CREDIT-HYP

Currency: INR

Statement of Account No :921030054955997 for the period (From : 21-05-2024 To : 19-03-2025)

Tran Date	Chq No	Particulars	Debit	Credit	Balance	Init. Br
OPENING BALANCE					-241782750.79
31-08-2024		921030054955997IntCol01002024 to 21032024	1490122.00		-246890122.00	1158
05-09-2024		NEPTSBDM2424091855SPRASAD ENTERPRISESSTATE BANK OF INDIAATTNtransfer		20900.00	-246870122.00	246
30-09-2024		921030054955997IntCol01002024 to 30002024	1826182.00		-246696304.00	1158
31-10-2024		921030054955997IntCol01002024 to 31102024	1909994.00		-250597298.00	1158
TRANSACTION TOTAL			28125531.21	19310984.00
CLOSING BALANCE					-250597298.00

Unless the constituent notifies the bank immediately of any discrepancy found by him/her in this statement of Account, it will be taken that he/she has found the account correct.

The closing balance as shown displayed includes not only the credit balance and / or as-credit limit, but also funds which are under clearing. It excludes the amount marked as fees, if any. Hence the closing balance displayed may not be the effective available balance. For any further clarifications, please contact the Branch.

We would like to reiterate that, as a policy, Axis Bank does not ask you to part out to disclose revalidate of your iConnect password, login id and debit card number through emails OR phone call Further, we would like to reiterate that Axis Bank shall not be liable for any losses arising from you sharing disclosing of your legion id, password and debit card number to anyone. Please co-operate by forwarding all such outp586n/spam emails, if received by you, to customer services/axisbank.com

REGISTERED OFFICE - AXIS BANK LTD, IRISHIEL Opp. Samarthamar Temple, Near Law Guides, Ellsbridge, Ahmedabad 380006. This is a system generated output and requires no signature.

Legends :

ICONN - Transaction trough Internet Banking

VMT-ICON - Visa Money Transfer through Internet Banking

AUTOSWEEP - Transfer to linked fixed deposit

REV SWEEP - Interest on Linked Fixed Deposit

SWEEP TRF - Transfer from Linked Fixed Deposit / Account

For AXIS BANK LTD,

Frank

Authorised Signatory

AXIS BANK

KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED

237

Joint Holder :-

GT ROAD THIMMAPURAM

GUNTUR

GUNTUR

GUNTUR

ANDHRA PRADESH

Customer No : 90696218

Scheme : TERM LOAN EMERGENCY

CREDIT LINE

Currency : INR

522233

Statement of Account No :9220600S0621762 for the period (From : 21-05-2024 To : 19-03-2025)

Trans Date	Chq No	Particulars	Debit	Credit	Balance	Init. Br
		OPENING BALANCE			-16830657.00
31-03-2024		9220600S0621762Normal IntCol010S2024 to 31	122761.00		-19961441.00	1130
30-06-2024		9220600S0621762Normal IntCol005S2024 to 30	116498.00		-17071920.00	1155
31-07-2024		9220600S0621762Normal IntCol010S2024 to 31	123303.00		-17202322.00	1155
19-08-2024		LASPAY recovery from 9210500S4955997		865340.52	-16337901.40	1130
31-09-2024		LASPAY recovery from 9210500S4955997		1249141.48	-13088757.00	1130
31-08-2024		9220600S0621762Normal IntCol010S2024 to 31	118374.00		-11207131.00	1155
30-09-2024		9220600S0621762Normal IntCol010S2024 to 30	106547.00		-15111373.40	1150
31-10-2024		9220600S0621762Normal IntCol011S2024 to 31	110550.00		-15423925.00	1155
		TRANSACTION TOTAL	699751.00	211485.00
		CLOSING BALANCE			-15423925.00

Unless the maximum notifies the bank immediately of any discrepancy found by handset in this statement of Account, it will be taken that he/she has failed the account correct.

The closing balance as shown/displayed includes not only the credit balance and / or overdraft limit, but also funds which are under clearing. It excludes the amount marked as loss, if any. Hence the closing balance/displayed may not be the effective available balance. For any further clarifications, please contact the Branch.

We would like to relocate that, as a policy, Axis Bank does not ask you to part with/badness/available of your (Contract person)/sign of and debit card number through details OR phone call Further, we would like to relocate that Axis Bank shall not be liable for any losses arising from you sharing/disclosing of your (sign) of, payment/available card number in anyone. Please co-operate by forwarding all such unquantified/paid emails, if received by you, to customer service/axisbank.com

REGISTERED OFFICE - AXIS BANK LTD, RUSHUL, Opp. Samartheswar Temple, Near Law Garden, Kithbridge. Ahmedabad 560006. This is a system generated output and requires no signature.

Legends :

ICONN - Transaction through Internet Banking

VMI-ICON - Visa Money Transfer through Internet Banking

AUTOSWEEP - Transfer to linked fixed deposit

RSV SWEEP - Interest on Linked fixed Deposit

SWEEP TRF - Transfer from Linked Fixed Deposit / Account

VMT - Visa Money Transfer through ATM

CWDR - Cash Withdrawal through ATM

PUR - POS purchase

TIP/SCG - Surcharge on usage of debit card at paupubalway ticket purchase or hotel tips

RATE/DSF - Difference in rates on usage of card internationally

CASH - Cash Transfer/Transfer

For AXIS BANK LTD.

Jaulo Authorised Signatory

AXIS BANK

239

KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED

Joint Holder - -

GT ROAD THIMMAPURAM

GUNTUR

GUNTUR

GUNTUR

ANDHRA PRADESH

522233

Customer No. 91765021

Scheme: TERM LN-SECURED-MTULV INT

Currency: INR

Statement of Account No. 9210600578566656 for the period (From : 21-05-2024 To : 19-03-2025)

Trans Date	Chq No	Particulars	Debit	Credit	Balance	Init. thr
OPENING BALANCE					-2562285.00
31-05-2024		9210600578566656Normal IntCol001062024 to 31	19127.00		-2521412.00	1158
30-06-2024		9210600578566656Normal IntCol001062024 to 30	18652.00		-2540954.00	1158
31-07-2024		9210600578566656Normal IntCol001072024 to 31	19416.00		-2559480.00	1158
19-08-2024		BRN LN REC PRN250239500 INT3719300 92100085495		2559480.00	.00	1158
31-08-2024		9210600578566656Normal IntCol001082024 to 31	11360.00		-11360.00	1158
30-09-2024		9210600578566656Normal IntCol001092024 to 30	84.00		-11484.00	1158
31-10-2024		9210600578566656Normal IntCol001102024 to 31	87.00		-11531.00	1158
TRANSACTION TOTAL			68726.00	2559480.00
CLOSING BALANCE					-11531.00

Unless the constituent notifies the bank immediately of any discrepancy found by him/her in this statement of Account, it will be taken that he/she has found the account correct.

The closing balance as shown/displayed includes not only the credit balance and / or overdraft limit, but also funds which are under clearing. It excludes the amount marked in box, if any. Hence the closing balance displayed may not be the effective available balance. For any further clarification, please contact the Branch.

We would like to reiterate that, as a policy, Axis Bank does not ask you to part with/produce/available of your (Connect personal rights) and debit card number through emails OR phone call Further, we would like to reiterate that Axis Bank shall not be liable for any losses arising from you through/including of your legal id, password and debit card number to anyone. Please co-operate by forwarding all such suspicious/again emails, if received by you, to co-owner, servicer and both com

REGISTERED OFFICE - AXIS BANK LTD, TREMUL, Opp. Samarthana Temple, Near Law Gendos, Elmbridge, Ahmedabad - 380006. This is a system generated output and requires no signature.

Legends :

ICONN - Transaction trough Internet Banking

VMT-ICON - Visa Money Transfer through Internet Banking

AUTOSWEEP - Transfer to linked fixed deposit

REV SWEEP - Interest on Linked Fixed Deposit

SWEEP TRF - Transfer from Linked Fixed Deposit / Account

VMT - Visa Money Transfer through ATM

CWOR - Cash Withdrawal through ATM

PUR - POS purchase

TIP SCG - Surcharge on usage of debit card at purpose/away ticket purchase at hotel tips

KATE DIFF - Difference in rates on usage of card internationally

CLG - Cheque Clearing Transaction

EDC - Credit transaction through EDC Machine

SETU - Seamless electronic fund transfer through AXIS Bank

For AXIS BANK LTD.

Authorised Signatory

AXIS BANK

241

KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED

Joint Holder GT ROAD THIMMAPURAM GUNTUR GUNTUR GUNTUR ANDHRA PRADESH 522223

Customer No 910000219 Scheme: TERM LN-RECURED-MTHLY INT Currency: INR

Statement of Account No: 921060057856643 for the period (From : 21-05-2024 To : 19-03-2025)

Trans Date	Chg No	Particulars	Debit	Credit	Balance	Init. Br
		OPENING BALANCE			-61113000.00
27-05-2024		Loan Call Form 921060054955997		.32	-61112999.48	1158
31-05-2024		921060057856643 Normal Int Coll 0102024 to 31	467135.00		-61183127.48	1158
30-06-2024		921060057856643 Normal Int Coll 0102024 to 30	455524.00		-62033461.48	1158
31-07-2024		921060057856643 Normal Int Coll 0102024 to 31	474598.00		-62591831.48	1158
19-08-2024		BRN LN REC PRM 532993 01 INT 33653500 521630054		4729831.48	-57780000.00	1158
31-08-2024		921060057856643 Normal Int Coll 0102024 to 31	482654.00		-58242664.00	1158
30-09-2024		921060057856643 Normal Int Coll 0102024 to 30	436834.00		-58677490.00	1158
31-10-2024		921060057856643 Normal Int Coll 0102024 to 31	448491.00		-59121981.00	1158
		TRANSACTION TOTAL	2738833.00	4729832.00
		CLOSING BALANCE			-59121981.00

I, abide the constituent smaller the bank immediately of any discrepancy found by him/her in this statement of Account, it will be taken that his/her has found the account correct.

The closing balance as shown/displayed includes not only the credit balance and / or overdraft limit, but also from which any under clearing. It excludes the amount marked in box, if any. Hence the closing balance displayed may not be the effective available balance. For any further clarifications, please contact the Bench.

We would like to reiterate that, as a policy, Axis Bank does not ask you to part with the loss to validate of your Contract provided by it of and debit card number through email. Off phone call Further, we would like to reiterate that Axis Bank shall not be liable for any losses arising from you sharing/declosing of your liquid, processed and deliv card number to anyone. Please co-operate by forwarding all such unqueness/chain emails, if received by you, to customer service/available.com

REGISTERED OFFICE - AXIS BANK LTD, TRISHUL, Opp. Samanthewar Temple, Near Loh Garden, Bhubalag. Ahmedabad 380006. This is a system generated output and requires no signature

Legends :

- ICONN - Transaction trough Internet Banking - VMT-ICON - Visa Money Transfer through Internet Banking - AUTOSWEEP - Transfer to linked fixed deposit - BEV SWEEP - Interest on Linked Fixed Deposit - SWEEP TIF - Transfer from Linked Fixed Deposit Account - VMT - Visa Money Transfer through ATM - CWDB - Cash Withdrawal through ATM - PUR - POS purchase - TIP SCG - Surcharge on usage of debit card at stamp/tradway ticket purchase or hand tips - RATE DIFF - Difference in rates on usage of card internationally

For AXIS BANK LTD.

Authorised Signatory

By Speed Post with AD/ Email

//Without Prejudice//

Ref: AXISB/SAG/SOUTH/2024-25/158

Date: 15.02.2025

To,

I.M/s. KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED, PAN: AAACK9373P Having Registered Office: KGSM Buildings, NH-5, G.T. Road, Thimmapuram - 522 233. (Guntur District) Andhra Pradesh

XXXX XXXX

Sub: Recall cum Guarantee Invocation Notice of Credit facilities sanctioned to M/s. KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED

We, Axis Bank Limited, (previously known as UTI Bank Ltd) a Company incorporated under the Companies Act, 1956 and carrying on its Banking business under the Banking Regulation Act, 1949 and having its Registered Office at Trishul, 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad- 380006 and having one of its branch at D. No. 5-87-23, Sai Santosh Towers, Lakshmipuram Main Road, Guntur - 522 007 and Structured Assets Group at Javahar Towers, 1st Floor, New No.3, Old no. 2, Club House Road, Anna Salai, Chennai - 600 002, issue this Notice as under, That No.1 of you carrying on business in the name and style of M/s KRISHNA GANGA SPINNING MILLS PRIVATE LIMITED and had approached the Bank for certain credit facilities and that after due consideration, the Bank sanctioned credit facilities of Rs.35.29 Cr on terms and conditions as mentioned in Bank's sanction letter bearing reference No. AXISB/CBGVJA/ KGSPL/179/2021-22 dated 23-11-2021 which was duly accepted by you all and you all had executed loan and security documents in respect of the aforesaid credit facilities. Past the same, the said credit facilities were reviewed/renewed/modified/amended from time to time with the last Sanction Letter being AXIS-000000B1142-CBG/SEG/VIJAYAWADA/2023-24 Dt. 15-09-2023 That you all executed the necessary documents which inter alia, includes Loan Agreement and other necessary documents. XXXX XXXX XXXX That You No. 1 after availing the aforesaid Credit facilities failed and neglected to honor the agreed terms and conditions of above mentioned sanctioned letters. In spite of repeated requests, opportunities and assurances given by the Company for repayment of the aforesaid Credit facilities, the Company failed to adhere to the terms of sanctions and committed defaults in regularizing/ repaying the aforesaid Credit facilities. Due to non-payment of outstanding dues/ interest dues to the Bank towards the aforesaid credit facilities, the account of the Proprietary firm has been classified as Non-Performing Asset (hereinafter referred as "NPA") in the books of the Bank as on 23.11.2024 in terms of extant guidelines issued by Reserve Bank of India. We regret to note that till date no concrete proposal or solution acceptable to the Bank, for repayment of the Bank's dues has been submitted by the firm. The current position of the Credit facilities after giving the credit to all the payments made by you is as under: (Rs)

Facility	A/c No	Loan O/s (excluding unapplied interest) as on October 31, 2024	Unapplied interest upto January 31, 2025	Total O/s as on January 31, 2025
CC	921030054955997	25,05,97,298.00	57,27,871.00	25,63,25,169.00
Term Loan-1	921060057856643	5,91,21,981.00	13,47,976.00	6,04,69,957.00
Term Loan-2	921060057856656	11,531.00	263.00	11,794.00
WCTL under ECLGS -1	9220600506121762	1,54,23,923.00	3,32,817.00	1,57,56,740.00
Bank Guarantee (Inland)	---	17,70,000.00	---	17,70,000.00*
	Total			33,25,63,660.00**

*-Bank Guarantee Outstanding as on 31-01-2025 is also due and will have to be paid in case of Invocation by the Beneficiary **-This amount does not include the dues payable under the Corporate Credit Card issued by the Bank to the Company and also the Outstanding under the Bank Guarantee Limit, whose outstanding amount(s) when invoked by the beneficiary will also be added to the Total Outstanding dues In these circumstances, we Axis Bank Limited, do hereby call upon you No. 1 to pay the Bank an outstanding amount of Rs 33,25,63,660.00 ps. (Rupees Thirty Three Crores Twenty Five Lakhs Sixty Three Thousand Six Hundred and Sixty only) as on 31.01.2025 with further interest from 01st February 2025 (plus Bank Guarantee amounts as and when invoked by the Beneficiary of the Bank Guarantee and also dues payable under the Corporate Credit Card issued to the Company) at the contractual rate within 7 days from the date of this notice together with interest, additional interest(s), compound interest, liquidated damages and other charges. In case of failing to comply with the above requisition contained herein above within 7 days, the Bank shall be constrained to file / initiate such legal proceedings under the provisions of law including the initiation of proceedings under SARFAESI Act 2002 against all of you as may be advised for entering the securities and reciting the dues at your own risk as to the cost and consequences. A copy of this notice is kept for record. The earlier Recall Notice bearing No. AXISB/SAG/SOUTH/20242-25/157 dated 12-02-2025 stands withdrawn. You may reach out to us at [email protected] or at below address for any correspondence. Relationship Manager – Structured Assets Group, Axis Bank Limited, Axis House, New No.3, First Floor, Club House Road, Anna Salal, Chennai - 600 002. Yours Faithfully,

"54...There is no requirement to calculate and fix the exact amount of repayment, this has been held by this Tribunal as under: "14. In so far as the facts included in the Section 7 application in Form 1 application is concerned, the Financial Creditor has to provide information about the debt which is due and payable and also the date and record of default. There is no requirement in the adjudication of Section 7 application to calculate and fix the exact amount of debt in default of repayment. It is only to be seen whether the amount in default is more than the minimum or threshold value that is prescribed in Section 4(1) of the IBC."

"12.

In this regard, we may note the settled legal position that for admission of an application under Section 7 of the Code, the adjudicating authority is only required to examine and satisfy itself that a financial debt exists and there is default in relation thereto. In this context, the observations of this Court in Innoventive Industries Limited vs. ICICI Bank and another (2018) 1 SCC 407 are of relevance and are extracted hereunder:

'30. On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is "due" i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only when this is proved to the satisfaction of the adjudicating authority that the adjudicating authority may reject an application and not otherwise.' Thus, the concept of a pre-existing dispute, which may be a stumbling block for admission of an application filed under Section 9 of the Code by an operational creditor, has no bearing on an application filed by a financial creditor under Section 7 of the Code."