C.P. No. (IB) 1234 OF 2022

Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016

And Rule 11 of NCLT Rules, 2016

Filed by

CFM Asset Reconstruction

Private Limited

…Applicant

In the matter of:

State Bank of India

…Petitioner/Financial

Creditor

vs.

Vidarbha Industries Power Limited

…Corporate Debtor

Order Dated: 07.03.2024

Coram:

Hon’ble Ms. Reeta Kohli, Member (Judicial)

Hon’ble Ms. Madhu Sinha, Member (Technical)

Appearance (Physical):

For the Applicant: Adv. Bhavika Deora (PH)

For the Respondent: Sr. Counsel Prateek Seksaria a/w Raghavi

Sharma (VC)

C.P. No. (IB) 1234 OF 2022

ORDER

Per: Reeta Kohli, Member (Judicial)

1. The above application I.A. No. 4428 OF 2023 is filed by CFM Asset Reconstruction Private Limited (hereinafter referred to as the “Applicant”) seeking direction against Vidarbha Industries Power Limited (hereinafter referred to as the “Respondent”) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 And Rule 11 of NCLT Rules, 2016 (hereinafter called as “the Code”), praying for following reliefs:

a. To allow the present Application and consequently permit the substitution of State Bank of India as the Financial Creditor in the captioned Company Petition, with the Applicant herein i.e. CFM Asset Reconstruction Private Limited;

b. That this Hon’ble Tribunal may be pleased to take on record the amended Memo of Parties (annexed herewith as Exhibit B) and allow the consequential amendment of the cause title of the Captioned Company Petition;

c. May pass any such other or further order as this Hon’ble Tribunal may deem fit and proper in favour of the Applicant, in the facts and circumstances of the case.

Brief facts

2. The Present Applicant bearing no. I.A. 4428 of 2023 is filed by CFM Asset Reconstruction Private Limited seeking substitution of the Applicant (CFM Asset Reconstruction Private Limited) as the C.P. No. (IB) 1234 OF 2022 Financial Creditor in the captioned Company Petition being Company Petition (IB) No. 1234 of 2022 in place of State Bank of India, the original Financial Creditor in the Company Petition.

3. It is submitted that the original Financial Creditor i.e State Bank of India being a part of the consortium of lenders ("Consortium") had extended certain credit facilities ("Facilities") to the Corporate Debtor for financing the Project. However, the Corporate Debtor defaulted in its payment obligations under the financing documents entered between the Corporate Debtor and the Financial Creditor on 31 March 2019 and therefore the original Financial Creditor declared the account of the Corporate Debtor as a Non-Performing Asset ("NPA") on 29 June 2019.

4. Therefore, in November 2022, the original Financial Creditor filed the Company Petition under Section 7 of the Code for initiating Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor claiming a sum of Rs. 2,043.98/- crores to be the amount in default as on 31^st October 2022.

5. It is further submitted that during the pendency of the captioned Company Petition, the original Financial Creditor, along with other lenders of the Consortium, vide assignment Agreement dated 17 August 2023 ("Assignment Agreement") has assigned all its rights in respect of the amounts due from the Corporate Debtor under various financing documents to the Applicant.

6. Pursuant to the above, it is submitted that the default as set out in the Company Petition are stand assigned to the Applicant, therefore the Applicant is entitled to continue the captioned Company Petition against the Corporate Debtor. Hence this Application.

C.P. No. (IB) 1234 OF 2022 Reply of the Respondent

7. The Corporate Debtor in its reply had denied each and every averment contained in the Application.

8. The Corporate Debtor submitted that the Applicant has not annexed the copy of the Assignment agreement dated 17.08.2023 on the basis of which the Applicant is seeking substitution of the Applicant with the State Bank of India (Financial Creditor). Therefore, the Application is d