The appeal was filed by T. Johnson, the majority shareholder and former Managing Director of St. John Freight System Limited (Corporate Debtor), challenging the legality and correctness of the order admitting the application filed by Phoenix ARC Pvt. Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal), Division Bench Chennai, admitted the application, leading to a moratorium and the appointment of an Interim Resolution Professional. The appellant argued that the claim was time-barred and grossly exaggerated.
T. Johnson, the majority shareholder and former Managing Director of St. John Freight System Limited (Corporate Debtor), filed an appeal against the admission of an application by Phoenix ARC Pvt. Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had secured a loan from State Bank of Travancore in 1999, amounting to Rs.59.35 Crores, which was renewed over time. The account was declared NPA on September 30, 2015. The bank assigned the account to Phoenix ARC Pvt. Ltd. on March 31, 2016. The total amount of default as of November 30, 2016, was Rs.60,92,44,653/-, which increased to Rs.73,08,54,170/- by March 15, 2018. The Corporate Debtor made a last payment on November 14, 2017. The Corporate Debtor also paid
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The appeal was filed by T. Johnson, the majority shareholder and former Managing Director of St. John Freight System Limited (Corporate Debtor), challenging the legality and correctness of the order admitting the application filed by Phoenix ARC Pvt. Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal), Division Bench Chennai, admitted the application, leading to a moratorium and the appointment of an Interim Resolution Professional. The appellant argued that the claim was time-barred and grossly exaggerated.
T. Johnson, the majority shareholder and former Managing Director of St. John Freight System Limited (Corporate Debtor), filed an appeal against the admission of an application by Phoenix ARC Pvt. Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had secured a loan from State Bank of Travancore in 1999, amounting to Rs.59.35 Crores, which was renewed over time. The account was declared NPA on September 30, 2015. The bank assigned the account to Phoenix ARC Pvt. Ltd. on March 31, 2016. The total amount of default as of November 30, 2016, was Rs.60,92,44,653/-, which increased to Rs.73,08,54,170/- by March 15, 2018. The Corporate Debtor made a last payment on November 14, 2017. The Corporate Debtor also paid
…The Corporate Debtor…
The Corporate Debtor's…