The case involves an appeal against the rejection of an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against DAAJ Hotels & Resorts Private Limited. Canara Bank, the appellant, claimed that the corporate debtor defaulted on financial assistance extended for the construction of a five-star hotel. The corporate debtor's account was declared NPA on 01.10.2012. The appellant initiated proceedings under Section 7 of the IBC after an OTS failed. The NCLT rejected the application based on limitation, considering prior proceedings under the Recovery of Debts and Bankruptcy Act, 1993 and SARFAESI Act.
DAAJ Hotels & Resorts Private Limited aimed to construct a five-star hotel, requiring an investment of Rs.101.31 Crores. They approached financial creditors, including State Bank of India, State Bank of Hyderabad, and Canara Bank (the Appellant). State Bank of India extended Rs.40 Crores, SBH extended Rs.10 Crores, and Canara Bank extended Rs.30 Crores. Due to financial difficulties, the Corporate Debtor sought an additional Rs.25 Crores. Despite the financial assistance, the project did not materialize, leading to a default. The account was declared NPA on 01.10.2012. The consortium initiated proceedings under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, before the Debt Recovery Tribunal (DRT), Hyderabad, seeking to recover Rs.131,88,29,454.89.
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The case involves an appeal against the rejection of an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against DAAJ Hotels & Resorts Private Limited. Canara Bank, the appellant, claimed that the corporate debtor defaulted on financial assistance extended for the construction of a five-star hotel. The corporate debtor's account was declared NPA on 01.10.2012. The appellant initiated proceedings under Section 7 of the IBC after an OTS failed. The NCLT rejected the application based on limitation, considering prior proceedings under the Recovery of Debts and Bankruptcy Act, 1993 and SARFAESI Act.
DAAJ Hotels & Resorts Private Limited aimed to construct a five-star hotel, requiring an investment of Rs.101.31 Crores. They approached financial creditors, including State Bank of India, State Bank of Hyderabad, and Canara Bank (the Appellant). State Bank of India extended Rs.40 Crores, SBH extended Rs.10 Crores, and Canara Bank extended Rs.30 Crores. Due to financial difficulties, the Corporate Debtor sought an additional Rs.25 Crores. Despite the financial assistance, the project did not materialize, leading to a default. The account was declared NPA on 01.10.2012. The consortium initiated proceedings under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, before the Debt Recovery Tribunal (DRT), Hyderabad, seeking to recover Rs.131,88,29,454.89.
…The account of the…
Proceedings initiated under Section 19 of…