LAW DEPARTMENT

TELANGANA ZONE
10-1-1199/2, PTI BUILDING, 2ND FLOOR, AC GUARDS, HYDERABAD-500 004
PH: O40-23397741 Email: Legal.Telangana@bankofindia.co.in
…………………………………………………………………………………………………………………………………………
Ref: TELGZO/LAW/JKM/29                                                Date: 06.02.2017

1.M/s Priyadarshini Spinning Mills Ltd.

3rd floor, M.N.Reddy Classic Building,
262/3 RT, Opposite Himalaya Book World,
Near Community Hall
Sanjeeva Reddy Nagar, Hyderabad.

2.M/s Priyadarshini Spinning Mills Ltd.

Satyanarayana Enclave Icon Block,
2nd floor Madinaguda, Balanagar Mandal, R R Dist,
Kukatpally Greater Hyderabad Municipal Corporation Circle,
Hyderabad-500049

3.M/s Priyadarshini Spinning Mills Ltd.

Factory address: Unit No 1,
Sadashivpet, Sangareddy Mandal,
Medak Dist, Telangana.

4.Sri Harish Cherukuri S/o Ch.Kauusalendra Rao

Managing Director M/s Priyadarshini Spinning Mills Ltd.
R/o Plot No.176, Road No.13,
Jublee Hills, Hyderabad-33

5.Sri Cherukuri Kauusalendra Rao, S/o Sri Arjuna Rao

Director M/s Priyadarshini Spinning Mills Ltd.
R/o Plot No.176, Road No.13,
Jublee Hills, Hyderabad-33

Sir/Madam,

Re: Notice for winding up under Companies act 2013/initiation of Insolvency

proceedings under the Insolvency and Bankruptcy Code 2016/Declaring as willful
defaulter/Non Co-Operative borrower and Publication of Names and photographs in News
papers
-----------------------------------------------------------------------------------
The No.1 of you, a company availed the following credit facility from our Hyderabad MCB.
Nature of facility Amount
Cash Credit Rs. 10.75 Crores
Term Loan Rs. 11.84 Crores
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 LAW DEPARTMENT
TELANGANA ZONE
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The Nos.4 &5 of you has stood as guarantors to the above detailed credit facility.

That all of you have availed the credit facility in full, but have failed to repay the same as per
the terms of loan sanctioned due to which, the loan account was classified as Non-
Performing Asset and recovery action has been initiated under the provisions of SARFAESI
Act for recovery of a sum of Rs. 15,11,00,000/- plus interest at appropriate rates from
23.11.2012 together with costs and expenses and a Recovery suit was also filed before DRT,
Hyderabad and the same is pending. But in spite of sufficient opportunities granted to you,
you have failed to pay the amount and thereby default in repayment continues and the
amounts due from you are accruing and rising every day.

Though you have sufficient means to repay the amount to the bank, you are willfully
and intentionally neglecting to pay and such acts amount to willful default and all of you are
willful defaulters. It is highly irrational and unethical on your part to have enjoyed the credit
facility by taking undue and unfair advantage for your benefit and unjustly enriched yourself
in an illegal manner and acted against the interest of the bank by siphoning off/mis-
utilisation of bank finance/usurping the bank funds and failing to repay the dues to the
bank.

Further we also draw your attention to the circular on Non Co-Operative borrowers
issued by Reserve bank of India in RBI/2014-15/362 DBR No.CID.BC.54/20.06.064/2014-15
dated 22.12.2014 as per which a Non Co-Operative borrower is a defaulter who deliberately
stone walls legitimate efforts of the lenders to recover the dues and non co-operative
borrower will include the company, its Promoters, Directors, persons who are in charge and
responsible for management of the affairs of the business enterprise. Further the
information on non co-operative barrowers has to be reported to Central Repository of
Information on Large Credits. The acts of defaulting in repayment of dues while having
ability to pay, thwarting the efforts for recovery, obstructing sale of securities, etc will
qualify you as a Non Co-operative borrower and if reported to Central Repository of
Information on Large Credits, it will have a negative impact on your present borrowings as
well as future borrowing and credit rating.

In view of the default committed in repayment of Bank Dues and also keeping in view the
facts and circumstances stated above, we as a creditor hereby call upon you and show cause
as to why:

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 LAW DEPARTMENT
TELANGANA ZONE
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1. Insolvency resolution process should not be initiated against all of you under the
provisions of The Insolvency and Bankruptcy Code 2016 to declare all of you as
insolvent.
2. Winding up proceedings should not be initiated against No.1 of you under the
provisions of Companies Act, 2013 in addition to the action proposed under the
Insolvency and Bankruptcy Code.
3. All of you should not be classified as Non Co-Operative borrowers and reported to
Central Repository of Information on Large Credits
4. All of you should not be declared as willful defaulters and your names and
photographs should not be published in leading news papers for the willful default
committed by you in repayment of the loan amount to the bank.
5. Any other action that may deem fit and necessary as to the facts and circumstances
warrant should not be taken against all of you.

Please treat this notice as a statutory notice under the provisions of Companies Act for
winding up and also note that all the above said actions shall be taken at your costs and
expenses and the above proposed action is without prejudice to our rights in any other
proceedings which have already been initiated/filed and /or may be initiated /filed before
any Court of Law with regard to recovery of aforementioned dues including the action taken
and to be taken under the provisions of SARFAESI Act and filing recovery suit before Debts
Recovery Tribunal.

Yours

(S.Jegankovilmani)
Senior Manager (Law)

Cc to: The AGM ARB

…. For information

Senior Manager (Law)