The case involves an appeal filed by the State Bank of India (SBI) against an order passed by the National Company Law Tribunal (NCLT), New Delhi Bench, which dismissed SBI's Section 7 application under the Insolvency and Bankruptcy Code (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against L.R. Builders Pvt. Ltd. The NCLT also allowed an application filed by L.R. Builders under Section 65 of the IBC, alleging that SBI had initiated insolvency proceedings with fraudulent and malicious intent. The appeal before the NCLAT challenges the NCLT's findings and observations, particularly regarding allegations of malafide intent and abuse of process.
The State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against L.R. Builders Pvt. Ltd. (LRB), a corporate guarantor for loans extended to P.P. Jewellers (Delhi). The NCLT dismissed SBI's application and allowed LRB's application under Section 65 of the IBC, alleging fraudulent initiation of CIRP. SBI had sanctioned a working capital facility of Rs.40 Crores to P.P. Jewellers on 23.02.2012, secured by a corporate guarantee from LRB. Previously, the State Bank of Bikaner and Jaipur (e-SBBJ) had sanctioned a term loan of Rs.60 Crores to P.P. Jewellers on 31.12.2011, also secured by LRB's guarantee. The loan facilities were renewed periodically, with LRB signing revival letters and sanction letters. The borrower's
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The erstwhile State Bank of Bikaner and Jaipur…
The Appellant (SBI) sanctioned a working…
The case involves an appeal filed by the State Bank of India (SBI) against an order passed by the National Company Law Tribunal (NCLT), New Delhi Bench, which dismissed SBI's Section 7 application under the Insolvency and Bankruptcy Code (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against L.R. Builders Pvt. Ltd. The NCLT also allowed an application filed by L.R. Builders under Section 65 of the IBC, alleging that SBI had initiated insolvency proceedings with fraudulent and malicious intent. The appeal before the NCLAT challenges the NCLT's findings and observations, particularly regarding allegations of malafide intent and abuse of process.
The State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against L.R. Builders Pvt. Ltd. (LRB), a corporate guarantor for loans extended to P.P. Jewellers (Delhi). The NCLT dismissed SBI's application and allowed LRB's application under Section 65 of the IBC, alleging fraudulent initiation of CIRP. SBI had sanctioned a working capital facility of Rs.40 Crores to P.P. Jewellers on 23.02.2012, secured by a corporate guarantee from LRB. Previously, the State Bank of Bikaner and Jaipur (e-SBBJ) had sanctioned a term loan of Rs.60 Crores to P.P. Jewellers on 31.12.2011, also secured by LRB's guarantee. The loan facilities were renewed periodically, with LRB signing revival letters and sanction letters. The borrower's
…The erstwhile State Bank of Bikaner and Jaipur…
The Appellant (SBI) sanctioned a working…