Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against AKJ Fincap Limited, the Corporate Guarantor to Agnipa Energo Pvt. Ltd, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was based on the default in a term loan account, which was classified as NPA. The Financial Creditor sought to initiate CIRP against the Corporate Guarantor due to outstanding dues. The Corporate Debtor argued that it is a Financial Service Provider with assets less than Rs. 500 crores, and therefore, the application should be dismissed as the Financial Creditor did not follow the guidelines for initiating CIRP against Financial Service Providers.
Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against AKJ Fincap Limited, the Corporate Guarantor for Agnipa Energo Pvt. Ltd. The application was based on a default in a term loan account. The loan account was classified as a Non-Performing Asset (NPA) on 30.04.2018. The total defaulted amount in the Term Loan account, including uncharged interest calculated up to 27.12.2019, stood at Rs. 11,34,30,136.00. Agnipa Energo Pvt. Ltd had approached the Financial Creditor for a loan of Rs. 10.65 Crores, which was sanctioned in principle. AKJ Fincap Ltd offered its Corporate Guarantee, represented by its Director Shri Ashok Kumar Jain, and
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The term loan account…
The Financial Creditor issued a reminder…
Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against AKJ Fincap Limited, the Corporate Guarantor to Agnipa Energo Pvt. Ltd, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was based on the default in a term loan account, which was classified as NPA. The Financial Creditor sought to initiate CIRP against the Corporate Guarantor due to outstanding dues. The Corporate Debtor argued that it is a Financial Service Provider with assets less than Rs. 500 crores, and therefore, the application should be dismissed as the Financial Creditor did not follow the guidelines for initiating CIRP against Financial Service Providers.
Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against AKJ Fincap Limited, the Corporate Guarantor for Agnipa Energo Pvt. Ltd. The application was based on a default in a term loan account. The loan account was classified as a Non-Performing Asset (NPA) on 30.04.2018. The total defaulted amount in the Term Loan account, including uncharged interest calculated up to 27.12.2019, stood at Rs. 11,34,30,136.00. Agnipa Energo Pvt. Ltd had approached the Financial Creditor for a loan of Rs. 10.65 Crores, which was sanctioned in principle. AKJ Fincap Ltd offered its Corporate Guarantee, represented by its Director Shri Ashok Kumar Jain, and
…The term loan account…
The Financial Creditor issued a reminder…