The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Division Bench, Chennai) admitting an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against M/s. Prasad Properties and Investments Pvt. Ltd. The appeal was filed by a director of the Corporate Debtor, arguing that the application was time-barred. The Financial Creditor, Kotak Mahindra Bank Ltd., had filed the application based on a debt recovery certificate obtained after the Corporate Debtor defaulted on payments related to credit facilities availed by borrower entities, for which the Corporate Debtor acted as a guarantor/mortgagor.
M/s. Prasad Properties and Investments Pvt. Ltd. (Corporate Debtor) acted as a corporate guarantor/mortgagor for credit facilities availed by Gemini Arts Pvt. Ltd., Green Gardens Pvt. Ltd., and Mahalaxmi Properties and Investments Pvt. Ltd. (Borrower Entities) from Indbank Housing Ltd. (IBHL). IBHL classified the Borrower Entities as Non-Performing Assets (NPA) in November 1997. IBHL filed civil suits against the Borrower Entities and the Corporate Debtor in 1998 and 1999. A compromise was reached, and a consent decree was recorded by the High Court of Madras on March 26, 2007. The Borrower Entities failed to make payments as per the compromise decree. Kotak Mahindra Bank Ltd. (Financial Creditor) acquired the debts of IBHL through assignment deeds dated October 13,
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Indbank Housing Ltd. (IBHL) classified the…
IBHL filed civil suits against the Borrower…
The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Division Bench, Chennai) admitting an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against M/s. Prasad Properties and Investments Pvt. Ltd. The appeal was filed by a director of the Corporate Debtor, arguing that the application was time-barred. The Financial Creditor, Kotak Mahindra Bank Ltd., had filed the application based on a debt recovery certificate obtained after the Corporate Debtor defaulted on payments related to credit facilities availed by borrower entities, for which the Corporate Debtor acted as a guarantor/mortgagor.
M/s. Prasad Properties and Investments Pvt. Ltd. (Corporate Debtor) acted as a corporate guarantor/mortgagor for credit facilities availed by Gemini Arts Pvt. Ltd., Green Gardens Pvt. Ltd., and Mahalaxmi Properties and Investments Pvt. Ltd. (Borrower Entities) from Indbank Housing Ltd. (IBHL). IBHL classified the Borrower Entities as Non-Performing Assets (NPA) in November 1997. IBHL filed civil suits against the Borrower Entities and the Corporate Debtor in 1998 and 1999. A compromise was reached, and a consent decree was recorded by the High Court of Madras on March 26, 2007. The Borrower Entities failed to make payments as per the compromise decree. Kotak Mahindra Bank Ltd. (Financial Creditor) acquired the debts of IBHL through assignment deeds dated October 13,
…Indbank Housing Ltd. (IBHL) classified the…
IBHL filed civil suits against the Borrower…