The case involves an appeal against the order passed by the National Company Law Tribunal (NCLT), Ahmedabad, which admitted a Corporate Insolvency Resolution Process (CIRP) application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, who is the Promotor/Director of Yours Ethnic Foods Pvt. Ltd. (Corporate Debtor), challenged the validity of the NCLT order. The financial creditor, Svakarma Finance Pvt. Ltd., had sanctioned a working capital term loan to the Corporate Debtor, and a loan agreement was executed. The loan was to be repaid in installments, but defaults occurred. The financial creditor filed an application under Section 7 of the Code, alleging default. The NCLT admitted the petition, leading to this appeal.
Svakarma Finance Pvt. Ltd. (Financial Creditor) sanctioned a working capital term loan to Yours Ethnic Foods Pvt. Ltd. (Corporate Debtor). A loan agreement was executed on 25.07.2019. The loan was granted for three years, from 20.08.2019 to 20.07.2022, with a 14% p.a. interest rate. The Financial Creditor disbursed the loan in two installments: Rs. 83,70,200 to the Corporate Debtor and Rs. 25,00,000 to a supplier of the Corporate Debtor. The repayment was to be made as per clause 5 of the agreement, with monthly installments due on the 20th of each month. The Corporate Debtor failed to pay the January 2020 installment on time and paid it in February 2020 without penal interest. The February 2020 installment was not paid at all. The Financial Creditor issued a loan
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Loan agreement executed between Svakarma…
Loan period s…
The case involves an appeal against the order passed by the National Company Law Tribunal (NCLT), Ahmedabad, which admitted a Corporate Insolvency Resolution Process (CIRP) application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, who is the Promotor/Director of Yours Ethnic Foods Pvt. Ltd. (Corporate Debtor), challenged the validity of the NCLT order. The financial creditor, Svakarma Finance Pvt. Ltd., had sanctioned a working capital term loan to the Corporate Debtor, and a loan agreement was executed. The loan was to be repaid in installments, but defaults occurred. The financial creditor filed an application under Section 7 of the Code, alleging default. The NCLT admitted the petition, leading to this appeal.
Svakarma Finance Pvt. Ltd. (Financial Creditor) sanctioned a working capital term loan to Yours Ethnic Foods Pvt. Ltd. (Corporate Debtor). A loan agreement was executed on 25.07.2019. The loan was granted for three years, from 20.08.2019 to 20.07.2022, with a 14% p.a. interest rate. The Financial Creditor disbursed the loan in two installments: Rs. 83,70,200 to the Corporate Debtor and Rs. 25,00,000 to a supplier of the Corporate Debtor. The repayment was to be made as per clause 5 of the agreement, with monthly installments due on the 20th of each month. The Corporate Debtor failed to pay the January 2020 installment on time and paid it in February 2020 without penal interest. The February 2020 installment was not paid at all. The Financial Creditor issued a loan
…Loan agreement executed between Svakarma…
Loan period s…