This appeal arises from an order dated 09.01.2024 by the National Company Law Tribunal (NCLT), Mumbai Bench-I, admitting an application for Corporate Insolvency Resolution Process (CIRP) against Barracks Retail India Pvt. Ltd. The CIRP was initiated by ASREC (India) Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, Puneet P. Bhatia, a suspended director of Barracks Retail India Pvt. Ltd., challenged the Adjudicating Authority's decision, primarily contesting the validity of the amended default date and the applicability of Section 10A of the IBC, which provides protection against CIRP for defaults occurring during the COVID-19 pandemic period.
Barracks Retail India Pvt. Ltd. (Corporate Debtor) was incorporated on 25.01.2016, focusing on garment manufacturing. In early 2017, the Corporate Debtor sought funding from Bharat Co-operative Bank (Mumbai) Limited. On 21.03.2017, the bank sanctioned a Term Loan of Rs. 5 crores for capital expenses and a Rs. 25 lakh Cash Credit limit. The Corporate Debtor pledged assets, including 41 non-agricultural plots, on 30.03.2017. On 08.06.2018, the bank reviewed the existing loans and, on 14.08.2018, approved an additional loan of Rs.1.91 crore to facilitate the Corporate Debtor's acquisition of Eye Catch Fashions Pvt. Ltd. On 20.12.2019, the bank sanctioned revised financial facilities to the Corporate Debtor. With the onset of COVID-19, the bank provided temporary relief,
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Barracks Retail India…
Bharat Co-operative Bank sanctioned a Term…
This appeal arises from an order dated 09.01.2024 by the National Company Law Tribunal (NCLT), Mumbai Bench-I, admitting an application for Corporate Insolvency Resolution Process (CIRP) against Barracks Retail India Pvt. Ltd. The CIRP was initiated by ASREC (India) Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, Puneet P. Bhatia, a suspended director of Barracks Retail India Pvt. Ltd., challenged the Adjudicating Authority's decision, primarily contesting the validity of the amended default date and the applicability of Section 10A of the IBC, which provides protection against CIRP for defaults occurring during the COVID-19 pandemic period.
Barracks Retail India Pvt. Ltd. (Corporate Debtor) was incorporated on 25.01.2016, focusing on garment manufacturing. In early 2017, the Corporate Debtor sought funding from Bharat Co-operative Bank (Mumbai) Limited. On 21.03.2017, the bank sanctioned a Term Loan of Rs. 5 crores for capital expenses and a Rs. 25 lakh Cash Credit limit. The Corporate Debtor pledged assets, including 41 non-agricultural plots, on 30.03.2017. On 08.06.2018, the bank reviewed the existing loans and, on 14.08.2018, approved an additional loan of Rs.1.91 crore to facilitate the Corporate Debtor's acquisition of Eye Catch Fashions Pvt. Ltd. On 20.12.2019, the bank sanctioned revised financial facilities to the Corporate Debtor. With the onset of COVID-19, the bank provided temporary relief,
…Barracks Retail India…
Bharat Co-operative Bank sanctioned a Term…