The case involves an application filed by Corporation Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Avvas Infotech Private Limited. The bank claimed that Avvas Infotech had defaulted on a total amount of Rs. 15,30,55,985.88 as of October 31, 2019. The corporate debtor availed various credit facilities from the bank, including cash credit loans and working capital loans. The corporate debtor failed to operate the loan accounts satisfactorily, leading to them being classified as non-performing assets. The bank issued a notice under the SARFAESI Act, but the corporate debtor and guarantors failed to comply with the demand. The bank also filed an application before the
…Corporation Bank filed an application under Section 7 of the IBC to initiate CIRP against Avvas Infotech Private Limited, claiming a default of Rs. 15,30,55,985.88 as of October 31, 2019. Avvas Infotech had availed cash credit loans and working capital loans from the bank. Specifically, a cash credit loan of Rs. 5,00,00,000 was availed on October 5, 2012, which was later enhanced to Rs. 7,50,00,000 on March 20, 2014, and subsequently revised to Rs. 2,79,00,000 on February 14, 2015. A working capital loan of Rs. 9,99,00,000 was availed on February 14, 2015. The loans were secured by a mortgage of immovable property and hypothecation of movable property. The loan accounts became non-performing assets on December 31, 2017, leading the bank to issue a notice under the
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Avvas Infotech availed…
The cash credit loan…
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The case involves an application filed by Corporation Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Avvas Infotech Private Limited. The bank claimed that Avvas Infotech had defaulted on a total amount of Rs. 15,30,55,985.88 as of October 31, 2019. The corporate debtor availed various credit facilities from the bank, including cash credit loans and working capital loans. The corporate debtor failed to operate the loan accounts satisfactorily, leading to them being classified as non-performing assets. The bank issued a notice under the SARFAESI Act, but the corporate debtor and guarantors failed to comply with the demand. The bank also filed an application before the
…Corporation Bank filed an application under Section 7 of the IBC to initiate CIRP against Avvas Infotech Private Limited, claiming a default of Rs. 15,30,55,985.88 as of October 31, 2019. Avvas Infotech had availed cash credit loans and working capital loans from the bank. Specifically, a cash credit loan of Rs. 5,00,00,000 was availed on October 5, 2012, which was later enhanced to Rs. 7,50,00,000 on March 20, 2014, and subsequently revised to Rs. 2,79,00,000 on February 14, 2015. A working capital loan of Rs. 9,99,00,000 was availed on February 14, 2015. The loans were secured by a mortgage of immovable property and hypothecation of movable property. The loan accounts became non-performing assets on December 31, 2017, leading the bank to issue a notice under the
…Avvas Infotech availed…
The cash credit loan…
Sign in to view related legal provisions.