The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by a Financial Creditor, Dena Bank, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Divya Jyoti Industries Ltd. The financial creditor claimed a default of Rs. 13,85,98,815/- including interest. The date of default was stated as 27.02.2018, when the first letter of credit devolved and the party did not pay. The Corporate Debtor's account was classified as NPA on 31.03.2018.
Dena Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Divya Jyoti Industries Ltd., the Corporate Debtor. The claimed default amount was Rs. 13,85,98,815/- including interest. The date of default was 27.02.2018, when a letter of credit devolved and the Corporate Debtor failed to make payment. The Corporate Debtor's account was classified as NPA on 31.03.2018. The Corporate Debtor argued liquidity issues and made a partial payment of Rs. 35 lakhs, also proposing an OTS. The Financial Creditor argued that the debt was due and payable and not barred by limitation. The application was filed in April 2019.
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The date when the first…
The Corporate Debtor's…
The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by a Financial Creditor, Dena Bank, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Divya Jyoti Industries Ltd. The financial creditor claimed a default of Rs. 13,85,98,815/- including interest. The date of default was stated as 27.02.2018, when the first letter of credit devolved and the party did not pay. The Corporate Debtor's account was classified as NPA on 31.03.2018.
Dena Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Divya Jyoti Industries Ltd., the Corporate Debtor. The claimed default amount was Rs. 13,85,98,815/- including interest. The date of default was 27.02.2018, when a letter of credit devolved and the Corporate Debtor failed to make payment. The Corporate Debtor's account was classified as NPA on 31.03.2018. The Corporate Debtor argued liquidity issues and made a partial payment of Rs. 35 lakhs, also proposing an OTS. The Financial Creditor argued that the debt was due and payable and not barred by limitation. The application was filed in April 2019.
The date when the first…
The Corporate Debtor's…