The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ghotaringa Minerals Ltd., alleging a default in payment of Rs. 982,82,01,341.70 as of 13/12/2017. The application was filed due to the corporate debtor's failure to discharge its liability as a guarantor for the principal borrower, Visa Steel Ltd. The applicant contended that the corporate debtor is liable for the claimed amount due to the default in payment. The respondent/corporate debtor raised objections, arguing that the application was not maintainable without first exhausting remedies against the principal borrower and that the authorized letter of the applicant was defective.
State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ghotaringa Minerals Ltd. SBI claimed that Ghotaringa Minerals Ltd. defaulted on a payment of Rs. 982,82,01,341.70 as of 13/12/2017. SBI, a body corporate under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, initiated the insolvency process based on a Letter of Authority. Ghotaringa Minerals Ltd. is identified as the corporate debtor with Identification No. U101020R2003PLC007348. The proposed Interim Resolution Professional (IRP) was Mr. Ashok Kumar Gulla. Visa Steel Ltd., the principal borrower, availed credit facilities including a fund-based limit of Rs. 628,36,00,000/- and a non-fund-based limit of Rs.
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Sanction letter dated 18/8/2016 for renewal…
Corporate debtor committed default in making…
The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ghotaringa Minerals Ltd., alleging a default in payment of Rs. 982,82,01,341.70 as of 13/12/2017. The application was filed due to the corporate debtor's failure to discharge its liability as a guarantor for the principal borrower, Visa Steel Ltd. The applicant contended that the corporate debtor is liable for the claimed amount due to the default in payment. The respondent/corporate debtor raised objections, arguing that the application was not maintainable without first exhausting remedies against the principal borrower and that the authorized letter of the applicant was defective.
State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ghotaringa Minerals Ltd. SBI claimed that Ghotaringa Minerals Ltd. defaulted on a payment of Rs. 982,82,01,341.70 as of 13/12/2017. SBI, a body corporate under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, initiated the insolvency process based on a Letter of Authority. Ghotaringa Minerals Ltd. is identified as the corporate debtor with Identification No. U101020R2003PLC007348. The proposed Interim Resolution Professional (IRP) was Mr. Ashok Kumar Gulla. Visa Steel Ltd., the principal borrower, availed credit facilities including a fund-based limit of Rs. 628,36,00,000/- and a non-fund-based limit of Rs.
…Sanction letter dated 18/8/2016 for renewal…
Corporate debtor committed default in making…