The appeal was filed by the Suspended Director of Fossil Logistics Private Ltd., challenging the 'Impugned Order' dated 15.06.2023 passed by the National Company Law Tribunal (NCLT), Division Bench - II, Chennai. The NCLT admitted a Section 7 application filed by State Bank of India (Financial Creditor), initiating Corporate Insolvency Resolution Process (CIRP) against Fossil Logistics Private Ltd., and appointed an Interim Resolution Professional. The appellant contends that the NCLT's order suffers from legal infirmity and overlooked prior judgments.
Fossil Logistics Private Ltd. acted as a corporate guarantor for loans availed by Coastal Energen Private Ltd. State Bank of India, the financial creditor, initiated CIRP against Coastal Energen Private Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC). Subsequently, State Bank of India also initiated CIRP against Fossil Logistics Private Ltd., based on its guarantee obligations. The NCLT admitted the application, leading to the appeal by the suspended director of Fossil Logistics Private Ltd. The appellant argued that CIRP against the guarantor is not permissible when CIRP against the principal borrower is already underway. The appellant also disputed the amount of default and claimed the company was solvent. The financial creditor contended that the
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The Corporate Debtor executed a Deed of…
The account of the Principal Borrower (Coastal…
The appeal was filed by the Suspended Director of Fossil Logistics Private Ltd., challenging the 'Impugned Order' dated 15.06.2023 passed by the National Company Law Tribunal (NCLT), Division Bench - II, Chennai. The NCLT admitted a Section 7 application filed by State Bank of India (Financial Creditor), initiating Corporate Insolvency Resolution Process (CIRP) against Fossil Logistics Private Ltd., and appointed an Interim Resolution Professional. The appellant contends that the NCLT's order suffers from legal infirmity and overlooked prior judgments.
Fossil Logistics Private Ltd. acted as a corporate guarantor for loans availed by Coastal Energen Private Ltd. State Bank of India, the financial creditor, initiated CIRP against Coastal Energen Private Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC). Subsequently, State Bank of India also initiated CIRP against Fossil Logistics Private Ltd., based on its guarantee obligations. The NCLT admitted the application, leading to the appeal by the suspended director of Fossil Logistics Private Ltd. The appellant argued that CIRP against the guarantor is not permissible when CIRP against the principal borrower is already underway. The appellant also disputed the amount of default and claimed the company was solvent. The financial creditor contended that the
…The Corporate Debtor executed a Deed of…
The account of the Principal Borrower (Coastal…