Debts Recovery Tribunals and Appellate Tribunals
Alchemist Asset Reconstruction Company Limited vs M/s.The National Sewing Thread Co. Ltd Managing Director Mr.B..Venkatesan on 18 July 2022
IN THE DEBTS RECOVERY TRIBUNAL-I, CHENNAI
Dated this 18th Day of July, 2022
PRESENT: SHRI A.S.JAYACHANDRA
Presiding Officer
TA No.260 of 2019
(OA No.6 of 2017 – DRT-III, Chennai)
M/s.Alchemist Asset Reconstruction Company Ltd., D-54, First Floor, Defence Colony, New Delhi – 110024.
. . . Applicant
Versus
1.
M/s.The National Sewing Thread Co. Ltd., Rep. By its Managing Director Mr.B.Venkatesan, No.11, Venugopala Pillai Road, Chidambaram – 608001.
2.
Mr.B.Venkatesan,
S/o Mr.N.R.Balakrishnan,
Plot No.337, Door No.337,
Park Road, Mariappan Nagar,
Usuppur Village,
Chidambaram Taluk,
Cuddalore – 608002.
3.
Mr.B.Ramachandran,
S/o Mr.N.R.Balakrishnan,
Plot No.337, Door No.337,
Park Road, Mariappan Nagar,
Usuppur Village,
Chidambaram Taluk,
Cuddalore – 608002.
. . . Defendants
Counsel for Applicant
:-
Mrs.A.Sella Visalakshi
Counsel for Defendants
:-
Ms.Anuradha Balaji
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: - FINAL ORDER - :
The Original OA was initially filed by Indian Overseas Bank against the defendants No.1 Company & 3 Others for recovery of a sum of Rs.86,17,19,461.42p along with interest @12.45% p.a. together with monthly interest compounded along with 2% penal interest from 15.07.2016 till realization.
The said claim is assigned by the bank to the present applicant which was allowed by the order dated 17.10.2017 in IA No.1724/2017.
Orders on IA No.241/2022:-
In this joint application for disposal of the OA, both the contesting parties have filed a joint petition transposing themselves as applicants 1 to 4. The said IA is dated 10.02.2022. They pray for a consent decree in favour of the first applicant to be passed against applicants 2, 3 & 4 who are the defendants in the OA mentioned above.
2. The parties to the OA included one Mr.N.R.Balakrishnan who was one of the Directors of the Defendant No.1 Company and upon the death of the said N.R.Balakrishnan, who is survived by the Legal Heirs namely Mr.B.Venkatesan and Mr.B.Ramachandran who are already on record, the IA No.60/2021 for substituting the LRs was allowed and the name of N.R.Balakrishnan is given up.
3. Thus the defendants in the OA are represented as in the cause title above, who also joined in the present memo as applicants in IA No.241/2022.
4. In the IA the parties having come to a consensus have prayed for a consent decree to be passed. The said IA No.241/2022 is supported by the individual affidavits filed by the authorized signatory of the applicant and the affidavits of Mr.B.Venkatesan in the capacity of the authorized representative of Defendant No.1 Company and that of being Mr.B.Ramachandran in the capacity of guarantor. Mr.B.Venkatesan is also the guarantor.
5. It is stated in the IA that the applicant had filed CIRP proceedings in CP No.622/IB/2019 and a resolution plan was approved by the orders of Hon’ble NCLT, Chennai in IBA number 622/2019 by an IA number 1032/2021 disposed on 06.12.2021. As per the resolution plan it was agreed by defendants No.2 & 3 that is Mr.B.Venkatesn and Mr.B.Ramachanrdan, while admitting the debt of Rs.125.43 Crores as on 28.08.2019. There shall be a settlement for Rs.20 Crores. The same is payable within 36 month from the date of approval of resolution plan. The repayment schedules as shown in Para-9 of the affidavits are as under:- Repayment Schedule Sl.No. Timelines Amount (Rs.Crore)
1. Within 90 days 0.50
2. Within 9 Months 2.00
3. Within 21 Months 5.00
4. Within 36 Months 7.50
5. 3.00
6. 1.00
7. 1.00
Total 20.00
6. It is also agreed between the parties that if the defendants 2 & 3 propose payment of Rs.20 Crores within 36 months from the approval of resolution plan as against the entire claim of the applicant and upon such payments of the said amount, the balance dues of the first defendant company shall stand waived in terms of clause number 37(f) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate persons) Regulations 2016.
7. In view of the above in the joint application, the parties pray for a decree to be passed in favour of the applicant. Heard the Ld. Counsel for the parties. They submit that a compromise decree may be passed. After perusal of the affidavit, the IA stands allowed and accordingly the TA stands disposed of by the following order:-
: - O R D E R - :
TA stands allowed in terms of the compromise and joint petition filed, with the following terms.
(a) The Applicant named above to file the satisfaction memo upon receipt of the entire sum of Rs.20 Crores as per the payment schedule mentioned as above in Para 5.
(b) In default of such payments by the defendants, the Defendants are directed to pay a sum of Rs.125.43 Crores as on 28.08.2019 with further interest @12.50% p.a. compounded quarterly, for which the recovery certificate be issued against the defendants accordingly.
(c) The applicant may seek execution of the recovery certificate only in case of default by filing proper application.
(d) Upon payment agreed as per the schedule made by the defendants the applicant shall be left over with no claim whatsoever.
(e) Parties to bear their own costs. (Dictated to PS, transcribed by him, corrected, signed and pronounced by me on this 18th day of July, 2022)
(A.S.JAYACHANDRA)
PRESIDING OFFICER
DRT-I, CHENNAI