Bank of Baroda, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Barnala Steel Industries Private Limited, the corporate debtor. The financial creditor claimed a default of Rs. 80,46,50,066.57/- plus interest. The corporate debtor opposed the application, citing various defects and omissions in the application, including issues with the Power of Attorney, lack of a Board Resolution, and discrepancies in the amount claimed. The corporate debtor also argued that business losses due to increased power tariffs, entry tax, and recession in the steel industry contributed to their inability to repay the debt.
Bank of Baroda sanctioned a cash credit facility to Barnala Steel Industries Pvt. Ltd. on 16.03.2001, which was enhanced on 27.03.2015 to Rs. 75,00,00,000.00. The corporate debtor defaulted on payments, leading to the account being declared a Non-Performing Asset (NPA) on 25.05.2016. Bank of Baroda issued a recall notice on 19.12.2016 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for a total amount of Rs. 80,46,50,066.57 plus unapplied interest and expenses. The financial creditor also filed an application under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993, before the Debts Recovery Tribunal, Dehradun, which restrained the corporate debtor from transferring or
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Bank of Baroda…
Cash credit li…
Bank of Baroda, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Barnala Steel Industries Private Limited, the corporate debtor. The financial creditor claimed a default of Rs. 80,46,50,066.57/- plus interest. The corporate debtor opposed the application, citing various defects and omissions in the application, including issues with the Power of Attorney, lack of a Board Resolution, and discrepancies in the amount claimed. The corporate debtor also argued that business losses due to increased power tariffs, entry tax, and recession in the steel industry contributed to their inability to repay the debt.
Bank of Baroda sanctioned a cash credit facility to Barnala Steel Industries Pvt. Ltd. on 16.03.2001, which was enhanced on 27.03.2015 to Rs. 75,00,00,000.00. The corporate debtor defaulted on payments, leading to the account being declared a Non-Performing Asset (NPA) on 25.05.2016. Bank of Baroda issued a recall notice on 19.12.2016 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for a total amount of Rs. 80,46,50,066.57 plus unapplied interest and expenses. The financial creditor also filed an application under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993, before the Debts Recovery Tribunal, Dehradun, which restrained the corporate debtor from transferring or
…Bank of Baroda…
Cash credit li…