The appeal arises from an order dated 16th July 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench, admitting a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The application was filed by Phoenix ARC Pvt. Ltd. (Financial Creditor) against Sovereign Developers and Infrastructure Ltd. (Corporate Debtor). The Corporate Debtor had taken a loan from Karnataka Bank, which was later assigned to Phoenix ARC. The Corporate Debtor defaulted on repayments, leading to the initiation of CIRP.
Sovereign Developers and Infrastructure Ltd. (SDIL), the Corporate Debtor, commenced a project called 'Sovereign Unnathi' in May 2010. Karnataka Bank granted a term loan of Rs. 25 crores to SDIL, which was to be repaid in installments from November 2012 to May 2014. SDIL failed to repay the loan, leading to its classification as a Non-Performing Asset (NPA) on 16.08.2013. Karnataka Bank issued a demand notice on 17.02.2014, seeking repayment of Rs. 19,32,25,988.22. On 29.03.2016, Karnataka Bank assigned the debt to Phoenix ARC Private Limited, the Financial Creditor. SDIL obtained an additional loan of Rs. 5 crores from Phoenix ARC on 09.06.2016. SDIL made some part payments but defaulted after 31.05.2017. Phoenix ARC issued a recall notice on 24.08.2017, demanding Rs.
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Sovereign Developers and Infrastructure Ltd.…
The ‘Corporate Debtor' was to repay the loan…
The appeal arises from an order dated 16th July 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench, admitting a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The application was filed by Phoenix ARC Pvt. Ltd. (Financial Creditor) against Sovereign Developers and Infrastructure Ltd. (Corporate Debtor). The Corporate Debtor had taken a loan from Karnataka Bank, which was later assigned to Phoenix ARC. The Corporate Debtor defaulted on repayments, leading to the initiation of CIRP.
Sovereign Developers and Infrastructure Ltd. (SDIL), the Corporate Debtor, commenced a project called 'Sovereign Unnathi' in May 2010. Karnataka Bank granted a term loan of Rs. 25 crores to SDIL, which was to be repaid in installments from November 2012 to May 2014. SDIL failed to repay the loan, leading to its classification as a Non-Performing Asset (NPA) on 16.08.2013. Karnataka Bank issued a demand notice on 17.02.2014, seeking repayment of Rs. 19,32,25,988.22. On 29.03.2016, Karnataka Bank assigned the debt to Phoenix ARC Private Limited, the Financial Creditor. SDIL obtained an additional loan of Rs. 5 crores from Phoenix ARC on 09.06.2016. SDIL made some part payments but defaulted after 31.05.2017. Phoenix ARC issued a recall notice on 24.08.2017, demanding Rs.
…Sovereign Developers and Infrastructure Ltd.…
The ‘Corporate Debtor' was to repay the loan…