IN THE NATIONAL COMPANY LAW TRIBUNAL

KOLKATA BENCH-I ,

KOLKATA

CP(IB) No. 1672/KB/2019

Petition under section 7 of the Insolvency and Bankruptcy Code, 2016, read

with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating

Authority) Rules, 2016

In the matter of:

Punjab National Bank, a body corporate constituted under the Banking

Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its

head office at Corporate Office Plot No. 4, Sector – 10 Dwarka, New Delhi –

110075 and inter alia its branch at 44 Park Street, P.S. Park Street, Kolkata-

700016 in the State of West Bengal.

.....Financial Creditor

-Versus-

M/s Swastik Commercial Private Limited, a company incorporated under the

Companies Act, 1956 and being a Company within the meaning of the

Companies

Act,

2013,

and

having

Corporate

Identification

No-

U51109WB1994PTC064212 and its registered office at CF – 361, Salt Lake

City, Sector I, Kolkata-700064 in the State of West Bengal.

.... Corporate Debtor/ Corporate Guarantor

Date of Hearing : 15^th February, 2022

Date of pronouncing the order: 27^th April, 2022

Coram:

Mr. Rohit Kapoor, Member (Judicial)

Mr. Harish Chander Suri, Member (Technical)

Appearances (via video conferencing ):

For the Financial Creditor: 1. Ms. Aparajita Rao, Advocate

IN THE NATIONAL COMPANY LAW TRIBUNAL

KOLKATA BENCH - I

Punjab National Bank vs. M/s Swastik Commercial Pvt. Ltd

CP (IB) No. 1672 /KB/ 2019

Page 2 of 7

For the Corporate Debtor : 1. Ms. Sapna Choubey, Advocate

2. Mr. Mohan Ram Goenka, PCS

3. Ms. Sneha Khaitan, PCS

ORDER

Per : Rohit Kapoor, Member (Judicial):

1. This Court convened through video conferencing.

2. This Company Petition under section 7 of the Insolvency and Bankruptcy

Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy

(Application to Adjudicating Authority) Rules, 2016 , has been filed by

Punjab National Bank (hereinafter referred to as the Financial Creditor),

seeking to initiate Corporate Insolvency Resolution Process (CIRP) against

M/s Swastik Commercial Private Limited (hereinafter referred to as the

Corporate Debtor).

Submissions of the Financial Creditor:

3. M/s Prithvi Ferro Alloys Pvt. Ltd., being the principal borrower, set up

a project of an integrated steel complex at Chandrapur district,

Maharashtra comprising of a Captive Power Plant (CPP) and a Ferro

Alloy Plant (FAP). The total project cost was ₹ 127.77 Crores and the

debt requirement was ₹ 87.32 Crores. The company had approached

Bank of Baroda for a term loan of ₹ 42.32 Crores under consortium

finance with the applicant. The Promoter’s contribution was ₹ 40.45

Crores. The company decided to take up the CPP project first and the

FAP project subsequently. Commercial Operation Date (COD) of the

CPP unit was fixed at April 2012.

4. The Applicant Financial creditor, being the Lead banker sanctioned a

term loan on 31.05.2011, consisting of ₹ 38.46 crore for the Power

Project and ₹ 6.54 crores for the Ferro Alloys. M/s Swastik Commercial

Pvt. Ltd. (hereinafter known as “Swastik”), being the Corporate

IN THE NATIONAL COMPANY LAW TRIBUNAL

KOLKATA BENCH - I

Punjab National Bank vs. M/s Swastik Commercial Pvt. Ltd

CP (IB) No. 1672 /KB/ 2019

Page 3 of 7

Guarantor, furnished corporate guarantee in consideration of grant of

credit limits to Prithvi Ferro Alloys P. Ltd.

5. The principal Borrower failed to repay its dues to the bank, despite many

attempts being made at debt restructuring and revival of the borrower

company. Accordingly, Corporate Insolvency Resolution Process was

initiated against the principal borrower in CP(IB) 40/KB/2019.

6. M/s. Swastik Commercial Pvt. Ltd. as the corporate guarantor is jointly

and severally liable for the dues of M/s Prithvi Ferro Alloys Pvt. Ltd.

The Financial Creditor is entitled to recover a s