Simbhaoli Sugar Limited, established in 1933, defaulted on loans from Oriental Bank of Commerce (now Punjab National Bank). OBC filed a Section 7 IBC petition, which the NCLT admitted, initiating Corporate Insolvency Resolution Process (CIRP). Two appeals were filed before the NCLAT: Company Appeal (AT) (Insolvency) No. 1404 of 2024 by Surender Pal Singh Mangat, a sugar cane farmer, and Company Appeal (AT) (Insolvency) No. 1405 of 2024 by Gursimran Kaur Mann, a suspended director of Simbhaoli Sugar Limited. The appeals challenged the NCLT's order, raising issues regarding the applicability of a struck-down RBI circular, the status of One Time Settlement (OTS) proposals, and the priority of farmers' dues under the Uttar Pradesh Sugarcane (Regulation of Supply and
…Simbhaoli Sugar Limited was established in 1933.
The company was unable to pay its debt.
Oriental Bank of Commerce (now Punjab National Bank) filed a Section 7 application on 05.09.2018.
The total outstanding as on 31.07.2018 was Rs. 103.61 crores plus further interest due to Oriental Bank of Commerce (OBC).
A credit facility of Rs. 110 crores was extended by OBC to the Corporate Debtor vide letter dated 29.01.2016.
The Corporate Debtor started to default on payment of the principal amount and interest.
OBC classified the Corporate Debtor's account as NPA on 30.11.2016.
A legal notice dated 29.10.2017 and a recall notice dated 01.11.2017 were issued by OBC.
The Corporate Debtor acknowledged its liability and submitted a restructuring proposal, which was rejected by the bank.
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Simbhaoli Sugar…
A total credit facility of Rs. 110 crores was…
Simbhaoli Sugar Limited, established in 1933, defaulted on loans from Oriental Bank of Commerce (now Punjab National Bank). OBC filed a Section 7 IBC petition, which the NCLT admitted, initiating Corporate Insolvency Resolution Process (CIRP). Two appeals were filed before the NCLAT: Company Appeal (AT) (Insolvency) No. 1404 of 2024 by Surender Pal Singh Mangat, a sugar cane farmer, and Company Appeal (AT) (Insolvency) No. 1405 of 2024 by Gursimran Kaur Mann, a suspended director of Simbhaoli Sugar Limited. The appeals challenged the NCLT's order, raising issues regarding the applicability of a struck-down RBI circular, the status of One Time Settlement (OTS) proposals, and the priority of farmers' dues under the Uttar Pradesh Sugarcane (Regulation of Supply and
…Simbhaoli Sugar Limited was established in 1933.
The company was unable to pay its debt.
Oriental Bank of Commerce (now Punjab National Bank) filed a Section 7 application on 05.09.2018.
The total outstanding as on 31.07.2018 was Rs. 103.61 crores plus further interest due to Oriental Bank of Commerce (OBC).
A credit facility of Rs. 110 crores was extended by OBC to the Corporate Debtor vide letter dated 29.01.2016.
The Corporate Debtor started to default on payment of the principal amount and interest.
OBC classified the Corporate Debtor's account as NPA on 30.11.2016.
A legal notice dated 29.10.2017 and a recall notice dated 01.11.2017 were issued by OBC.
The Corporate Debtor acknowledged its liability and submitted a restructuring proposal, which was rejected by the bank.
…Simbhaoli Sugar…
A total credit facility of Rs. 110 crores was…