The appeal arises from an order dated 11.10.2023 passed by the Adjudicating Authority, National Company Law Tribunal, Kolkata Bench, dismissing a Section 7 application filed by Adhunik Corporation Limited (Appellant) seeking initiation of Corporate Insolvency Resolution Proceedings (CIRP) against Shivam India Limited (Respondent-Corporate Debtor). The Appellant claimed that the Respondent defaulted on financial assistance provided under a Memorandum of Agreement (MoA).
Adhunik Corporation Limited (Appellant) provided financial assistance to Shivam India Limited (Respondent) to operationalize its factory, which was shut down due to financial constraints. An agreement dated 18.05.2015 was entered into, followed by a Memorandum of Agreement (MoA) executed on 23.06.2020. The Appellant provided Rs. 27.85 crore to the Respondent, including Rs. 23.49 crore as direct financial assistance and Rs. 4.36 crore for raw materials. The financial assistance was secured by depositing 69.42% equity shares of the Respondent with Trans Scan Securities Pvt. Ltd. The Appellant was to receive sales commission in return. The Appellant claimed that the Respondent failed to repay the financial assistance and sales commission. A notice dated 11.10.2021 was
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Appellant and…
Fresh MoA executed between Adhunik…
The appeal arises from an order dated 11.10.2023 passed by the Adjudicating Authority, National Company Law Tribunal, Kolkata Bench, dismissing a Section 7 application filed by Adhunik Corporation Limited (Appellant) seeking initiation of Corporate Insolvency Resolution Proceedings (CIRP) against Shivam India Limited (Respondent-Corporate Debtor). The Appellant claimed that the Respondent defaulted on financial assistance provided under a Memorandum of Agreement (MoA).
Adhunik Corporation Limited (Appellant) provided financial assistance to Shivam India Limited (Respondent) to operationalize its factory, which was shut down due to financial constraints. An agreement dated 18.05.2015 was entered into, followed by a Memorandum of Agreement (MoA) executed on 23.06.2020. The Appellant provided Rs. 27.85 crore to the Respondent, including Rs. 23.49 crore as direct financial assistance and Rs. 4.36 crore for raw materials. The financial assistance was secured by depositing 69.42% equity shares of the Respondent with Trans Scan Securities Pvt. Ltd. The Appellant was to receive sales commission in return. The Appellant claimed that the Respondent failed to repay the financial assistance and sales commission. A notice dated 11.10.2021 was
…Appellant and…
Fresh MoA executed between Adhunik…