DBS Bank India Limited vs M/s S.K.S Textiles Limited

a. The Financial Creditor submits that it has sanctioned the following credit facilities to the Corporate Debtor as under:

Under facility letter bearing Ref No. CDT/ADMIN/321/2015 dated 29.04.2015 r/w modification letter dated 10.09.2015 of this Financial Creditor, the Corporate Debtor was sanctioned with the following facilities upon the terms and conditions mentioned:

Under facility letter bearing Ref No. CDT/ADMIN/48/2016 dated 24.02.2016 of this Financial Creditor, the Corporate Debtor was sanctioned with the following facilities upon the terms and conditions mentioned:

Under facility letter bearing Ref No. CDT/ADMIN/98/2017 dated 17.02.2017 of this Financial Creditor, the facilities earlier sanctioned were extended in favour of the Corporate Debtor upon the terms and conditions therein mentioned:

Under facility letter bearing Ref No. CDT/ADMIN/159/2018 dated 22.02.2018 of this Financial Creditor, has extended the existing facilities sanctioned to the Corporate Debtor upon the terms and conditions therein mentioned:

Under facility letter bearing Ref No. CDT/ADMIN/108/2019 dated 07.02.2019 of this Financial Creditor, agrees to and had renewed the existing facilities granted to the Corporate Debtor upon the terms and conditions therein mentioned:

Under facility letter bearing Ref No. BSU/IBG-3/369/2020 dated 30.03.2020 of this Financial Creditor agrees to and had renewed the existing facilities granted to the Corporate Debtor upon the terms and conditions therein mentioned:

Under facility letter bearing Ref No. BSU/IBG-3/ECLGS/113 of 2020 dated 27.10.2020 of this Financial Creditor, the Corporate Debtor was sanctioned with the fresh facility in the form of Guarantee Emergency Credit Line facility in the sum of about INR 3,84,00,000 upon the terms and conditions therein mentioned.

a. It is clear from the records that the Corporate Debtor in its reply has acknowledged the debt which was due and payable to the Financial Creditor.

The petition bearing CP(IB) 799/MB-IV/2021 filed by DBS Bank India Limited, (“the Financial Creditor”), under section 9 of the IBC read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against M/s S.K.S Textiles Limited (“the Corporate Debtor”), is admitted.

There shall be a moratorium under section 14 of the IBC, in regard to the following:

The institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;

Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;

Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002;

The recovery of any property by an owner or lessor where such property is occupied by or in possession of the Corporate Debtor.

Notwithstanding the above, during the period of moratorium, -

The supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during the moratorium period;

That the provisions of sub-section (1) of section 14 of the IBC shall not apply to such transactions as may be notified by the Central Government in consultation with any sectoral regulator;

The moratorium shall have effect from the date of this order till the completion of the CIRP or until this Tribunal approves the resolution plan under sub-section (1) of section 31 of the IBC or passes an order for liquidation of Corporate Debtor under section 33 of the IBC, as the case may be.

Public announcement of the CIRP shall be made immediately as specified under section 13 of the IBC read with regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Mr. Anurag Jain, an Insolvency Professional registered with Indian Institute of Insolvency Professionals of ICAI having registration number IBBI/IPA-001/IP-P01049/2017-2018/11732. He is appointed as IRP for conducting CIRP of the Corporate Debtor and to carry the functions as mentioned under IBC, the fee payable to IRP/RP shall comply with the IBBI Regulations / Circulars / Directions issued in this regard. The IRP shall carry out functions as contemplated by Sections 15,17,18,19,20,21 of the IBC.

During the CIRP Period, the management of the Corporate Debtor shall vest in the IRP or, as the case may be, the RP in terms of section 17 of the IBC. The officers and managers of the Corporate Debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP within a period of one week from the date of receipt of this Order, in default of which coercive steps will follow.

The Fin shall deposit a sum of Rs.5,00,000/- (Rupees five lakh only) with the IRP to meet the expenses arising out of issuing public notice and inviting claims. These expenses are subject to approval by the Committee of Creditors (CoC).

The Registry is directed to communicate this Order to the Fin, the Corporate Debtor and the IRP by Speed Post and email immediately, and in any case, not later than two days from the date of this Order.

A copy of this Order be sent to the Registrar of Companies, Maharashtra, Mumbai, for updating the Master Data of the Corporate Debtor. The said Registrar of Companies shall send a compliance report in this regard to the Registry of this Court within seven days from the date of receipt of a copy of this order.