The appeal arises from an order dated 27 April 2021, by the Adjudicating Authority/National Company Law Tribunal, Bench-V, New Delhi, which rejected an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, Intec Capital Ltd, a financial creditor, sought to initiate Corporate Insolvency Resolution Process (CIRP) against the corporate guarantor, Eastern Embroidery Collections Private Limited (EECPL), for a sum borrowed by the partnership firm M/s Eastern Overseas. The Adjudicating Authority rejected the application primarily because the appellant applied under Section 7 instead of Section 95 of the IBC, and because the application for CIRP against the personal guarantor did not follow applicable rules.
Intec Capital Limited ('Intec'), a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Eastern Embroidery Collections Private Limited ('EECPL'), the corporate guarantor for a sum borrowed by M/s Eastern Overseas, a partnership firm. M/s Eastern Overseas obtained two loans from Intec, amounting to Rs. 82,20,000 and Rs. 34,65,000, sanctioned on 07.10.2013 and 18.02.2014, respectively. EECPL provided a corporate guarantee for the loan. Intec and the borrower/guarantor entered into a loan agreement with a 14% interest rate, repayable in monthly installments. A notice was issued on 01.04.2015, recalling the loan facility due to defaults. EECPL also provided
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M/s Eastern Overseas sanctioned two loans…
A notice was issued recalling the loan…
The appeal arises from an order dated 27 April 2021, by the Adjudicating Authority/National Company Law Tribunal, Bench-V, New Delhi, which rejected an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, Intec Capital Ltd, a financial creditor, sought to initiate Corporate Insolvency Resolution Process (CIRP) against the corporate guarantor, Eastern Embroidery Collections Private Limited (EECPL), for a sum borrowed by the partnership firm M/s Eastern Overseas. The Adjudicating Authority rejected the application primarily because the appellant applied under Section 7 instead of Section 95 of the IBC, and because the application for CIRP against the personal guarantor did not follow applicable rules.
Intec Capital Limited ('Intec'), a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Eastern Embroidery Collections Private Limited ('EECPL'), the corporate guarantor for a sum borrowed by M/s Eastern Overseas, a partnership firm. M/s Eastern Overseas obtained two loans from Intec, amounting to Rs. 82,20,000 and Rs. 34,65,000, sanctioned on 07.10.2013 and 18.02.2014, respectively. EECPL provided a corporate guarantee for the loan. Intec and the borrower/guarantor entered into a loan agreement with a 14% interest rate, repayable in monthly installments. A notice was issued on 01.04.2015, recalling the loan facility due to defaults. EECPL also provided
…M/s Eastern Overseas sanctioned two loans…
A notice was issued recalling the loan…