Limited 6 ribs J

McNally Bharat Engineering Company

CIN: L45202WB1961PLC025181
Corporate Office: Ecospace Campus 2B 11F/12
160
New Town Rajarhat North 24 Parganas Kolkata 700
T +91 334459111
rat.com
E [email protected] W www.mcnallybha
-700 001
Registered Office: 4 Mangoe Lane Kolkata

May 5, 2022
BSE Limited
Floor 25, Phiroze Jeejeebhoy Towers
Dalal Street, Mumbai — 400001

The National Stock Exchange of India Ltd.

Exchange Plaza, Plot no. C/1, G Block
Bandra - Kurla Complex, Bandra (E), Mumbai - 400051

Dear Madan/Sir,

Tribunal
(“NC LT”),

Sub: Intimation of Order passed by National Company Law

Kolkata Bench-I
and Disclosure
Disclosure Pursuant to Regulation 30 of SEBI (Listing Obligations
Requirements) Regulations, 2015
ng:
Pursuant to the aforesaid Regulation, we request you to note the followi

has been admitted in Corporate Insolvency Resolution Process

(i) The Company
an Order pronounced by the Hon’ble National Company Law
(‘CIRP’) vide
No.
Tribunal (NCLT), Kolkata on 29" April 2022 in Company Application
tcy
C.P.(IB)No.891/KB/2020 under Section 7 of the Insolvency and Bankrup
Code, 2016 (IBC);
(il) The Company has received a copy of the said Order on 4"" May 2022 for initiation
of CIRP of the Company (enclosed);
Jain
(iii) Pursuant to the said Order, the Hon’ble NCLT has appointed Mr. Anuj
(Registration No. IBBI/IPA-001/IP-P00142/2017-2018/10306) as the Interim
Resolution Professional (IRP) as proposed by the Financial Creditor.

made available on the website of the Company at

This intimation is being
www.menallybharat.com.

We request you to kindly take the same on record.

Yours faithfully,
F l McNally Bharat Engineering Company Limited

wPoor L-
IndraniRay —~
Company Secretary

Encl: As above.
Company
An ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 Certified
Member CWA Williamson Magor Group
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH - I
KOLKATA

C.P (IB) No. 891/KB/2020

An application 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;

Bank of India
...Financial Creditor/ Applicant
Versus
McNally Bharat Engineering Company Limited [CIN

L45202WB1961PLC025181],having registered office at 4, Mango Lane,7th floor,

Kolkata- 700001, West Bengal,

...Corporate Debtor
Date of Hearing: 25.04.2022
Date of Pronouncement: 29.04.2022

Coram:

Rajasekhar V.K. : Member (Judicial)

Balraj Joshi : Member (Technical)

Appearances (through Video Conferencing/physical)

Mr. Jishnu Chowdhury, Advocate | For the Financial Creditor

Mr. Soumabho Ghose, Advocate ]

Mr. Ankur Singhi, Advocate ]

Ms. Riti Basu, Advocate ]

Ms. Piyali Pan, Advocate ]

Ms. Chandrani Das, Advocate ]

Mr. Ratnanko Banerji, Sr. Advocate ] For the Corporate Debtor

Mr. Soorjya Ganguli, Advocate ]

Mr. Prithwish Roy Chowdhury, Advocate ]

Ms. Kiran Sharma, Advocate ]

Mr. Tridib Bose, Advocate ]

Page 1 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH -I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

ORDER
Rajasekhar V.K., Member (Judicial)

Prologue
1. The Court convened via video conference.

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

Code, 2016 (Code) read with Rule 4 of the Insolvency and Bankruptcy
(Application to Adjudicating Authority) Rules, 2016, filed Mr. Manish Gupta,
Assistant General Manager, Bank of India (‘Financial Creditor’), duly
authorized'vide Letter of Authorization dated 16 March, 2020°to initiate

Corporate Insolvency Resolution Process (‘CIRP’) against McNally Bharat

Engineering Company Limited (‘Corporate Debtor’).

The present Petition has been filed on the grounds that the Corporate Debtor
had committed default in paying of Rs.4,78,73,25,854.29/- (Rupees Four

Hundred Seventy-Eight Crore Seventy-Three Lakh Twenty-Five Thousand

Eight Hundred Fifty-Four and paise Twenty Nine Only) as on 10 March, 2020.
The date of default is stated to be 30 January, 2019.

Particulars Amount (in crores)

Cash credit Limit 2,85,00,00,000.00

(+) Net Interest Outstanding as on 47,17,49,414.8

10.03.2020

(+) BG invocation 108,90,02,420

(+) LC Devolvement 37,65,74,019.78

Default Amount 4,78,73,25,854.29

It is submitted in the Petition, Part — II that the authorised share capital of the

Corporate Debtor is Rs.50,00,000,000/- (Rupees Five Hundred Crore only)

with paid up Capital of Rs.221,32,07,570/- (Rupees Two Hundred Twenty

One Crore Thirty Two Lakh Seven Thousand Five Hundred Seventy only).

"Power of Attorney — Annexure — A of the Petition.

"Annexure Al of the Petition
Page 2 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH -I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

Submission of Mr. Jishnu Chowdhury,Ld. Counsel appearing on behalf of

the Financial Creditor.

5.1 At the request of the Corporate Debtor, the Financial Creditor had sanctioned
the cash credit facility, which was being renewed from time to time. However,
the cash credit facility was last renewed on 27 March, 2018,3 on the terms and

conditions, in the following manner:

Nature of | Sub-limit Limit Total Limit

Facility sanctioned (in | Sanctioned (in | Sanctioned (in
rupees/crores) | rupees/crores) rupees/crores)
Fund Based
Cash Credit 285.00
Facility (Against
Stock/ Book
Debts - 180/365
days)
Fund Based Total 285.00
Non Fund Based
LC (I/F)-DP/ 80.00
DA-180 days
BG (//F) 344.00
BG (Onerous) (100.00)
CEL on Forward (0.11)
Contract Limits/
Derivatives
Non Fund Based Total 424.00
Total 709.00

5.2 The following security interest were held by the Financial Creditor towards the
credit facility;

I. Hypothecation of Stock and Book Debts

1. Hypothecation of Stocks and book debts and other current assets

on pari passu basis.

ii. Margin on NFBL at 5% on LC and BG

3 Annexure — D of the Petition

Page 3 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH - I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

Il. Collateral Security

1. First pari passu mortgage charge on Kumardhubi Unit No. 1

property presently owned by McNally Sayaji Engineering Co.
Ltd.

li. Copy of the Registrar of Loan Securities of the Financial Creditor

dated 24.04.2011 and the extension of mortgage dated 01.03.2017
drawn by the Financial Creditor, in evidence of creation of

Equitable Mortgage,

lil. Subservient pari passu charge on fixed assets of the corporate

debtor.

Iv. Pledge of 16.00 lakh shares of McNally Sayaji Engineering Co.

Ltd .. BookValue per share Rs. 125.00 on 28.12.2017.

v. | Non-disposable undertaking of its shareholding in Singapore

Subsidiary i.e., MBE Mineral Rechnologies PTE Ltd.

Il. Guarantee

1. Corporate Guarante of McNally Sayaji Engineering Co. Ltd:.to

the extent of the value of Kumardhubi Unit I.

5.3 On failure of the Corporate Debtor to adhere to the payment scheduled as per
the agreed terms and conditions, the Financial Creditor sent a recall notice

dated 07 March, 2020 and an e-mail dated 14 March, 2020, to the Corporate

Debtor for repayment of outstanding debts in various credit facilities as

44
availed.

5.4 The default in the payment of the debt has also been recorded with the
Information utility; the Credit Information Bureau (India) Limited (CIBIL)

Report dated 12 March, 2020.°

“Annexure — Z of the Petition.

> Annexure — J of the Petition.s
Page 4 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH - I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

Submission of Mr. Ratnanko Banerji, Ld. Sr. Counsel appearing on behalf

of the Corporate Debtor.

6.1 The Corporate Debtor categorically denies and disputes various submissions
by Financial Creditor, save and except the matter of facts and matter of record.
Further, the petition does not state the date of disbursal or withdrawal, also, the
computation amount pertaining to the principal and its interest provided in part
IV of the petition is inaccurate and is inconsistent with the Annexure -F to the
petition and the purported debt is incomplete.

6.2 The alleged purported debt has not arisen out of the sanction letter dated 27
March, 2018, as the cash credit facility was to expire on 20 March, 2019. The
Financial Creditor has falsely stated that an amount of Rs.731,53,52,802.55
has been utilised till March 10, 2020, which cannot be the case as the total

limit granted as on 27 March, 2018 was Rs.709 crores and the credit limit

cannot be exceeded.

6.3 Further, the date of default has been stated as the date of expiry of the sanction
letter which is after the date of default. The financial creditor has failed to
bring on record any documentary evidence adducing the amount due. Since the
petition is lacking in these basic particulars the petition ought to be rejected in
limine.

Ld. Counsel Mr. Jishnu Chowdhury appearing for the Financial Creditor, in its
rejoinder has relied on the guidelines laid by the Reserve Bank of India®,
where it says that the account is to be marked as NPA on expiry of 90 days
from the date of default. Hence, the date of default has been rightly arrived by
the Financial Creditor.

*Income Recognition Asset Classification Provisioning and other related matters circular dated 01
July, 2015.
Page 5 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH - I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

Analysis and Findings

8. We have heard the learned counsel appearing on behalf of the Financial

Creditor and the learned senior counsel appearing on behalf of the Corporate
Debtor and perused the pleadings filed by the parties.
9. The documents on record reflects the financial assistance rendered by the
Financial Creditor to the Corporate Debtor against time value of money, which
is one of the pre-requisites envisaged under section 7 of the Code. These
transactions between the parties on the agreed terms and conditions is
justifiable enough to construe that there is an existence of financial debt’.
10. Further, Extracts of the minutes of meeting dated 09 May, 2019 of the Board
ofdirectors of McNally Bharat Engineering Company Limited at page 1086 of
the Petition and Annual Accounts of McNally Bharat Engineering Company
Limited forthe year 2018-2019 at pages 1087-1301 of the Petition, are sound
enough to shed light on the default of payment of the existing financial debt
by the Corporate Debtor.
11. It is also pertinent to mention that on many occasion the parties tried to come
to a bargain, however, these meetings between the Corporate Debtor and the
Financial Creditor did not culminate into any settlement.
12. The present petition made by the Financial Creditor is complete in all respects
as required by law. The Petition establishes that the Corporate Debtor is in
default of a debt due and payable and that the default is more than the
minimum amount stipulated under section 4 (1) of the Code, stipulated at the

relevant point of time.

13. Accordingly, it is, hereby ordered as follows:-
a) The application bearing CP (IB) No. 891/KB/2020 filed by Bank of
India, the Financial Creditor, under section 7 of the Code read with rule

4(1) of the Insolvency & Bankruptcy (Application to Adjudicating

Authority) Rules, 2016 for initiating CIRP against McNally Bharat
Engineering Company Limited Bush Tea Company Private Limited,
the Corporate Debtor, is admitted.

b) There shall be a moratorium under section 14 of the IBC.

Page 6 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH - I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

c) The moratorium shall have effect from the date of this order till the
completion of the CIRP or until this Adjudicating Authority approves
the resolution plan under sub-section (1) of section 31 of the IBC or

passes an order for liquidation of Corporate Debtor under section 33 of

the IBC, as the case may be.

d) Public announcement of the CIRP shall be made immediately as

specified under section 13 of the Code read with regulation 6 of the
Insolvency & Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons)Regulations, 2016.
Mr. Anuj Jain, registration number IBBI/IPA-001/IP-P00142/2017-

2018/10306, email: anujvjain @bsraffiliates.com, is hereby appointed

as Interim Resolution Professional (IRP) of the Corporate Debtor to

carry out the functions as per the Code subject to submission of a valid
Authorisation of Assignment in terms of regulation 7A of the
Insolvency and Bankruptcy Board of India (Insolvency Professional)
Regulations, 2016. The fee payable to IRP or the RP, as the case may
be, shall be compliant with such Regulations, Circulars and Directions
as may be issued by the Insolvency & Bankruptcy Board of India
(IBBI). The IRP shall carry out his functions as contemplated by
sections 15, 17, 18, 19, 20 and 21 of the Code.

During the CIRP period, the management of the Corporate Debtor shall
vest in the IRP or the RP, as the case may be, in terms of section 17 of

the IBC. The officers and managers of the Corporate Debtor shall
provide all documents in their possession and furnish every
information in their knowledge to the IRP within one week from the
date of receipt of this Order, in default of which coercive steps will

follow. No separate notice for cooperation by the suspended

management should be expected.

8) The IRP/RP shall submit to this Adjudicating Authority periodical

report with regard to the progress of the CIRP in respect of the
Corporate Debtor.

Page 7 of 8
 IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH - I
C.P (IB) No. 891/KB/2020
Bank of India v. McNally Bharat Engineering Company Limited

h) The Financial Creditor shall deposit a sum of Rs.5,00,000/- (Rupees

Five Lakh only) with the IRP to meet the expenses arising out of
issuing public notice and inviting claims. These expenses are subject to
approval by the Committee of Creditors (CoC).
In terms of section 7(5)(a) of the Code, Court Officer of this Court is

hereby directed to communicate this Order to the Financial Creditor,

the Corporate Debtor and the IRP by Speed Post and email
immediately, and in any case, not later than two days from the date of
this Order.

J) Additionally, the Financial Creditor shall serve a copy of this Order on

the IRP and on the Registrar of Companies, West Bengal, Kolkata by
all available means for updating the Master Data of the Corporate
Debtor. The said Registrar of Companies shall send a compliance
report in this regard to the Registry of this Court within seven days
from the date of receipt of a copy of this order.
14. CP (IB) No. 891/KB/2020 to come up on 25 July, 2022 for filing the
periodical report.
15. A certified copy of this order may be issued, if applied for, upon compliance
with all requisite formalities.

Balraj Joshi Rajasekhar V.K.

Member (Technical) Member (Judicial)

SA, LRA

This order is pronounced on 29" day of April, 2022

Page 8 of 8
 Date & Time of Download : 05/05/2022 14:17:32

BSE ACKNOWLEDGEMENT

Acknowledgement Number 3999031

Date and Time of Submission 5/5/2022 2:07:20 PM
Scripcode and Company Name 532629 - MCNALLY BHARAT ENGINEERING COMPANY LTD.
Subject / Compliance Regulation Intimation Of Order Passed By National Company Law Tribunal
(“NCLT”), Kolkata Bench-I Disclosure Pursuant To Regulation 30 Of
SEBI (Listing Obligations And Disclosure Requirements) Regulations,
2015
Submitted By Indrani Ray
Designation Company Secretary &Compliance Officer

Disclaimer : - Contents of filings has not been verified at the time of submission.
 Date & Time of Download : 05/05/2022 14:17:59

BSE ACKNOWLEDGEMENT

Acknowledgement Number 3999027

Date and Time of Submission 5/5/2022 2:04:00 PM
Scripcode and Company Name 532629 - MCNALLY BHARAT ENGINEERING COMPANY LTD.
Subject / Compliance Regulation Corporate Insolvency Resolution Process (CIRP)-Admission of
application by Tribunal
Submitted By Indrani Ray
Designation Company Secretary &Compliance Officer

Disclaimer : - Contents of filings has not been verified at the time of submission.
 Date 05-MAY-22

NSE Acknowledgement
Symbol: MBECL
................................................................................................................................................................................
Name of the company: Mcnally Bharat Engineering Company Limited
................................................................................................................................................................................
Subject: CIRP - Commencement
................................................................................................................................................................................
Date of Submissions: 05-May-2022 14:16:08
................................................................................................................................................................................
Application No. 2022052047429
................................................................................................................................................................................

We hereby acknowledge receipt of your submission. Please note that the content and information
provided is pending to be verified by National Stock Exchange of India Limited.
 Date 05-MAY-22

NSE Acknowledgement
Symbol: MBECL
................................................................................................................................................................................
Name of the company: Mcnally Bharat Engineering Company Limited
................................................................................................................................................................................
Subject: General updates
................................................................................................................................................................................
Date of Submissions: 05-May-2022 14:13:08
................................................................................................................................................................................
Application No. 2022052047426
................................................................................................................................................................................

We hereby acknowledge receipt of your submission. Please note that the content and information
provided is pending to be verified by National Stock Exchange of India Limited.