S.No.14

IN THE NATIONAL COMPANY LAW TRIBUNAL

HYDERABAD BENCH – 1

VC AND PHYSCIAL (HYBRID) MODE

ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON

08-05-2024 AT 10:30 AM

CP(IB) No. 147/7/HDB/2023

AND

IA (IBC) 777/2024 in CP(IB) No. 147/7/HDB/2023

u/s. 7 of IBC, 2016

IN THE MATTER OF:

State Bank of India …Financial Creditor

AND

M/s. Vijay Textiles Limited …Corporate Debtor

C O R A M:-

DR. VENKATA RAMAKRISHNA BADARINATH NANDULA, HON’BLE MEMBER (JUDICIAL)

SH. CHARAN SINGH, HON’BLE MEMBER (TECHNICAL)

O R D E R

CP(IB) No. 147/7/HDB/2023

Orders pronounced. In the result, this company petition is dismissed. No costs.

IA (IBC) 777/2024

Learned Senior Counsel Mr Krishna Grandhi along with the counsel on record

Mr Maharshi Viswaraj, for applicant present physically.

Learned Counsel Mr GP Yash Vardhan, for Financial Creditor present physically.

This application was filed to hear both sides on Section 10(a) of IBC, 2016.

We heard the both sides on 29.04.2024 and the issue of 10(a) is considered and

decided in the main company petition for section 7.

In view of this, this application is disposed of.

Sd/- Sd/-

MEMBER (T) MEMBER (J)

THE NATIONAL COMPANY LAW TRIBUNAL HYDERABAD BENCH - I, HYDERABAD Under Section 7 of The Insolvency and Bankruptcy Code, 2016 IN THE MATTER OF State Bank of India Reg. Office: State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai, Maharashtra-400021 One of the Branch offices:

State Bank of India, Stressed Assets Management Branch, Secunderabad, 5-9-76, 2^nd Floor, Prabhat Towers, Chapel Road, Gunfoundry, Hyderabad-500001.

…Financial Creditor AND M/s. Vijay Textiles Ltd Reg. Office: 104, Surya Towers, SP Road, Secunderabad, Telangana – 500003.

…Corporate Debtor Coram:

DR. VENKATA RAMAKRISHNA BADARINATH NANDULA HON’BLE MEMBER (JUDICIAL)

SHRI CHARAN SINGH, HON’BLE MEMBER (TECHNICAL)

Parties/Counsels present:

For Petitioner : Mr. GP Yashvardhan (Counsel)

For Respondent : Mr. Maharshi Vishwaraj (Counsel)

PER BENCH

ORDER

1. This is a Petition filed by ‘State Bank of India’ (hereinafter referred as ‘Financial Creditor’) under Section 7 of ‘The Insolvency and Bankruptcy Code, 2016’ (hereinafter referred as ‘IBC’) seeking initiation of ‘Corporate Insolvency Resolution Process’ (hereinafter referred as ‘CIRP’) of ‘M/s. Vijay Textiles Ltd’ (hereinafter referred as ‘Corporate Debtor’). It was alleged that the Corporate Debtor committed a default of Rs. 87,10,59,630.59/- (Rupees Eighty-Seven Crores Ten Lakhs Fifty-Nine Thousand Six Hundred and Thirty Fifty-Nine Paise Only) towards the Financial Creditor. The details of the debt and default as alleged by the Financial Creditor as on 31.05.2023 are as follows:

Principal Amount Rs. 55,36,81,130.17 Interest Rs. 31,73,78,500.52 Total Claim Rs. 87,10,59,630.59 Date of Default - 01.02.2014 Terms by which Date of Default was arrived at (Not specifically stated or mentioned in the Petition)

2. It was submitted that the Corporate Debtor was provided with financial assistance by way of credit facilities by the Financial Creditor herein, State Bank of Hyderabad (now merged with the Financial Creditor herein) and Axis Bank. It was submitted that in order to secure the payment of the credit facilities availed by the Corporate Debtor, hypothecation charge was established on the stocks, movables, receivables and other mortgaged properties of the Corporate Debtor. That the Guarantors of the Corporate Debtor executed guarantee agreements for payment of the financial assistance obtained by the Corporate Debtor.

3. It was submitted that the Corporate Debtor after availing the financial facilities, violated the terms of the sanction letters and documents and thereby committed default on 01.02.2014. It was submitted that after this default, the account of the Corporate Debtor was restructured by way of a Master Restructuring Agreement dated 31.07.2014 entered into between the Corporate Debtor and the Financial Creditor along with State Bank of Hyderabad and Axis Bank. Subsequently, this Master Restructuring Agreement was amended by way