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IN THE NATIONAL COMPANY LAW TRIBUNAL

COURT NO. 5, MUMBAI BENCH

C.P.(IB)1166/MB/2020

Under Section 7 of the IBC, 2016

In the matter of

Edelweiss

Asset

Reconstruction

Company Ltd.

Edelweiss House, Off CST Road, Kalina,

Santacruz (east), Mumbai- 400098

... Petitioner

v/s.

Perfect Engine Components Private

Limited

1101, Viraj Towers, Junc of Andheri-

Kurla Road, W. E. Highway, Andheri

(east), Mumbai- 400069

… Corporate Debtor

Order Pronounced on: 10.08.2021

Coram:

Hon’ble Suchitra Kanuparthi, Member (Judicial)

Hon’ble Chandra Bhan Singh, Member (Technical)

For the Petitioners: Adv. Abhijeet Sinha, Adv. Nishit Dhruva, Adv. Prakash

Shinde, Adv. Rohan Agrawal, Adv. S.M. Algaus, Adv. Zaid

Mansuri, Adv. Priyanka Shah, Adv. Harshad Vyas i/b MDP

& Partners

For the Corporate Debtor: Adv. Mukesh Jain, Adv. Eshna Kumar

Per: Suchitra Kanuparthi, Member (Judicial)

ORDER

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1. This Company Petition is filed by Edelweiss Asset Reconstruction Company

Ltd. (hereinafter called “Petitioner”) seeking to set in motion the Corporate

Insolvency Resolution Process (CIRP) against Perfect Engine Components

Private Limited (hereinafter called "Corporate Debtor") alleging that the

Corporate Debtor committed default to the extent of Rs. 226,77,83,051/- as

provided under Section 7 of the Insolvency & Bankruptcy Code (hereinafter

called "Code") read with Rule 4 of Insolvency & Bankruptcy (Application

to Adjudicating Authority) Rules, 2016.

Submissions made by the Petitioners:

2. The Petition reveals that the State Bank of India (“Original Lender”) had

extended various credit facilities to the Corporate Debtor at the requests

made by the Corporate Debtor vide its Sanction Letters, the details of which

are extracted below:

3. The Counsel for the Petitioner submits that the above mentioned credit

facilities were secured by the Personal and Corporate Guarantees of various

individuals and one Corporate namely M/S. Perfect Engineering Products

Ltd. vide the following Deeds of Guarantee:

• Guarantee Agreement dated 11.12.2008

• Guarantee Agreement dated 15.12.2008

• Guarantee Agreement dated 30.05.2009

• Guarantee Agreement dated 23.03.2010

• Guarantee Agreement dated 31.03.2011

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4. The Counsel for the Petitioner submits that the Corporate Debtor entered

into the following Agreements for Hypothecation of Goods and Assets with

the Original Lender in relation to the above mentioned credit facilities

extended:

• Agreement of Hypothecation of Goods and Assets dated 11.12.2008

• Supplemental Agreement of Hypothecation of Goods and Assets for

increase in overall limit dated 30.05.2009

• Supplemental Agreement of Hypothecation of Goods and Assets for

increase in overall limit dated 23.03.2010

• Supplemental Agreement of Hypothecation of Goods and Assets for

increase in overall limit dated 31.03.2011

5. The Counsel for the Petitioner further submits that the Corporate Debtor also

created mortgage of various immovable properties in favor of the Original

Lender vide the following Deeds of Mortgage:

• Registered Mortgage Deed dated 24.12.2008

• Registered Mortgage Deed dated 13.08.2010

• Registered Mortgage Deed dated 08.08.2011

6. The Counsel for the Petitioner further submits that the Corporate Debtor

committed default in repayment of its outstanding dues on 31.03.2009 and

the Corporate Debtor’s account was declared as NPA on 30.06.2009 by the

Original Lender. The Corporate Debtor had also acknowledged the

outstanding debt which is reflected in various Balance Confirmation Letters

issued by the State Bank of India dated 31.03.2010, 31.03.2010, 31.03.2011

and 31.03.2012. The last Balance Confirmation Letter dated 31.03.2012 is

as below:

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7. The Original Lender, i.e., State Bank of India, had issued a notice under

Section 13(2) of the Securitization and Reconstruction of Financial Assets

and Enfo