Kanoria Chembond Private Limited (Petitioner) sought the Corporate Insolvency Resolution Process (CIRP) of Artedz Fabs Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The basis for the application was the Corporate Debtor's default of Rs. 56,07,945/- plus interest, stemming from an Inter Corporate Deposit (ICD) Agreement. The Petitioner had granted a loan to the Corporate Debtor to meet working capital needs, with the ICD Agreement outlining the terms of the deposit, including an 18-month tenure and a 12% per annum interest rate. The Corporate Debtor made partial repayments but failed to fully repay the outstanding amount upon the expiry of the extended tenure.
Kanoria Chembond Private Limited (Kanoria) and Artedz Fabs Limited (Artedz) entered into an Inter Corporate Deposit (ICD) agreement on 2016-07-18, where Kanoria extended a debt of Rs. 70 lakhs to Artedz. The amount was disbursed in installments between 2016-07-22 and 2016-08-31, with an interest rate of 12% per annum, calculated quarterly on the reducing balance. Artedz repaid Rs. 20 lakhs on 2017-04-17, leaving a balance of Rs. 50 lakhs. The ICD tenure expired on 2018-03-31. Kanoria demanded the refund of the balance amount with interest on 2018-05-15. The tenure was extended until 2019-03-31. Artedz paid interest on 2018-06-08, 2018-06-12, and 2018-06-15 but failed to pay the balance amount along with interest by 2019-03-31. Kanoria issued another demand letter on
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Kanoria Chembond Private Limited and Artedz…
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Kanoria Chembond Private Limited (Petitioner) sought the Corporate Insolvency Resolution Process (CIRP) of Artedz Fabs Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The basis for the application was the Corporate Debtor's default of Rs. 56,07,945/- plus interest, stemming from an Inter Corporate Deposit (ICD) Agreement. The Petitioner had granted a loan to the Corporate Debtor to meet working capital needs, with the ICD Agreement outlining the terms of the deposit, including an 18-month tenure and a 12% per annum interest rate. The Corporate Debtor made partial repayments but failed to fully repay the outstanding amount upon the expiry of the extended tenure.
Kanoria Chembond Private Limited (Kanoria) and Artedz Fabs Limited (Artedz) entered into an Inter Corporate Deposit (ICD) agreement on 2016-07-18, where Kanoria extended a debt of Rs. 70 lakhs to Artedz. The amount was disbursed in installments between 2016-07-22 and 2016-08-31, with an interest rate of 12% per annum, calculated quarterly on the reducing balance. Artedz repaid Rs. 20 lakhs on 2017-04-17, leaving a balance of Rs. 50 lakhs. The ICD tenure expired on 2018-03-31. Kanoria demanded the refund of the balance amount with interest on 2018-05-15. The tenure was extended until 2019-03-31. Artedz paid interest on 2018-06-08, 2018-06-12, and 2018-06-15 but failed to pay the balance amount along with interest by 2019-03-31. Kanoria issued another demand letter on
…Kanoria Chembond Private Limited and Artedz…
First disbursement of…