Udit Harish Seth vs Bank of Baroda & Anr.

“O R D E R

(Hybrid Mode)

12.04.2024: Learned counsel for the Appellant submits that by the impugned order the Adjudicating Authority has admitted Section 7 application filed by Bank of Baroda. It is submitted by learned counsel for the Appellant that even before delivering orders by the Adjudicating Authority, the Corporate Debtor informed the Court that Corporate Debtor is taking steps to liquidate the debt of the Banks and it is submitted that OTS/ Restructuring Proposal has submitted to the Bank.

Learned counsel for the Bank submits that the Bank has received the proposal day before yesterday. He submits that there are three Banks and Bank of Baroda is the Lead Bank and approval is required from the competent authority of all the three Banks, which may take time.

Considering the above, the appeal be taken after four weeks enabling the parties to arrive at settlement, if any.

List these Appeals on 13.05.2024.

In the meantime, impugned order dated 08.04.2024 shall remain stayed.”

“Way Forward: Union Bank of India told that in earlier proposal company proposed to pay interest also from upfront amount, however in the proposal in hand (submitted by the Company in August 2024), No amount proposed for interest payment. All the Banks advised the Company to re-submit the restructuring proposal with improvement in sustainable debt, upfront amount and interest payment. Company informed that they will work over it and submit the proposal in few days. It is also discussed that after receiving Remaining amount of Rs.8.00 Cr (out of Rs.25.00 Cr) from TCGL, Banks may start to work on restructuring. Member Banks were of the view that we may get quotations for TEV Study, Rating and process advisor, so that tasks may be assigned as soon as the amount received.”

“BANK OF BARODA - ZOSARB. MUMBAI

MINUTES OF THE JLM-A/c. M/s SE TRANSSTADIA PRIVATE

LIMITED

HELD ON 2 nd April 2025 at 4.00 p.m.

At Branch Premises of ZOSAR Branch- Bank of Baroda/

Online (Teams) Meeting

Shri. Vijay Jain, Assistant General Manager, Bank of Baroda, ZOSARB chaired the meeting and welcomed all the lenders. List of the participants is enclosed as per Annexure -1. Minutes of the previous consortium meeting held on 01.03.2025 were confirmed by all the lenders. Thereafter the forum discussed on the following agenda:-

NCLAT matter: BOB has informed all the lenders that matter at NCLAT is pending for about 1 year and asked views of member Banks about withdrawal of CIRP process in account M/s SE Transstadia Pvt Ltd, & M/s Transstadia Holdings Pvt Ltd., with condition that in case Restructuring in the account could not approved within six months by consortium Banks, Bank will be at liberty to revive the CIRP process before NCLT. Lead Bank informed that have already taken up the matter with competent authority. Mr. Hitesh Patel of UBI and Mr. Rajesh Lamba and Mr. Nikhil T from BOI are in principal agreed for conditional withdrawal of the matter. Next date at NCLAT is 7 th April 2025. Mr. Udit Sheth has informed that they are having bookings for upcoming events like Navratri and Ganesh Utsav and expected that revenue generation may increase, once the account is withdrawn from NCLT as Company has not been getting more bookings for events due to admission in NCLT.

Recovery of cutback amount : All the lenders have informed the company that Cut Back amount is not deposited by the company. Mr. Harith Vyas of the company has informed that after issuing NOC by all the lenders, joint discussions with Government are going on and company is in process of executing pledge agreement with TCGL and expecting to enter into agreement by 05.04.2025, there after by second week of April 2025, Rs.8 Cr will be released by Govt, and company told that pending cut back amount may be recovered from that amount by the lenders.

Way forward and discussion over proposed restructuring in the account: All the lenders have issued NOC to the company to create charge over 10% shares of the Company held by the Directors and SE Transstadia holding Pvt ltd. in favor of TCGL and to create 2nd charge of TCGL over fixed assets of the Company. Mr. Udit Sheth thanked all the lenders for issuing NOC and support of the lenders for restructure in the account and told that pending Rs.8 Cr may be released by the government by next week and requested all the lenders to conduct TEV study/ rating/ other requirements of restructure simultaneously. Company also informed that Olympics in the year 2036 are likely to be held at Gujarat, and official visits already done for the same. The stadium of the Company may host many of the events in the Olympics. All the Banks advised the Company to re-submit the concrete restructuring proposal with improvement in sustainable debt, upfront amount and interest payment. Company informed that they will work over it and submit the proposal in few days. There being no other matter remained to discuss, the meeting ended with a vote of thanks to the Chair. *************”

“PRAYERS

In view of the above facts and circumstances, it is most respectfully prayed that this Hon'ble Appellate Tribunal may be pleased to:

a. Direct Respondent No.1 to expedite the completion of the necessary documentation with the Government of Gujarat;

b. Direct Respondent No.1 to take immediate steps for withdrawal of the insolvency proceedings against the Corporate Debtor by filing an application under Section 12A of the Code before the Hon’ble Adjudicating Authority;

c. Pending the withdrawal, direct continuation of the stay on the operation of the Impugned Order dated 08.04.2024 passed by the Hon'ble Adjudicating Authority; and/or

d. Pass such other order(s) and/or direction(s) as this Hon'ble Appellate Tribunal may deem fit and proper in the facts and circumstances of the present case.”