This appeal was filed by T. Johnson, the majority shareholder and erstwhile 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.
St. John Freight System Limited (Corporate Debtor) obtained a secured loan from State Bank of Travancore (Bank) in 1999, totaling Rs. 59.35 Crores. The credit facility was renewed and enhanced over time. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) by the Bank on September 30, 2015. The Bank assigned the account to Phoenix ARC Pvt. Ltd. (Financial Creditor) on March 31, 2016. According to a notice issued under Section 13(2) of the SARFAESI Act, 2002, 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, when the application for Corporate Insolvency Resolution Process was filed. The Corporate Debtor made a payment of Rs. 1.38 Crores to the Financial Creditor after
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State Bank of Travancore granted a secured…
The account of St. John Freight System Limited…
This appeal was filed by T. Johnson, the majority shareholder and erstwhile 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.
St. John Freight System Limited (Corporate Debtor) obtained a secured loan from State Bank of Travancore (Bank) in 1999, totaling Rs. 59.35 Crores. The credit facility was renewed and enhanced over time. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) by the Bank on September 30, 2015. The Bank assigned the account to Phoenix ARC Pvt. Ltd. (Financial Creditor) on March 31, 2016. According to a notice issued under Section 13(2) of the SARFAESI Act, 2002, 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, when the application for Corporate Insolvency Resolution Process was filed. The Corporate Debtor made a payment of Rs. 1.38 Crores to the Financial Creditor after
…State Bank of Travancore granted a secured…
The account of St. John Freight System Limited…