State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hanumanta Engineering Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's failure to comply with the terms and conditions of loan agreements and credit limits, resulting in a default of Rs. 173,85,76,484.56. The corporate debtor contested the application, arguing that the financial creditor suppressed facts, charged excessive interest rates, and that the application was barred by limitation. The corporate debtor also claimed that parallel proceedings were initiated by the financial creditor and that an existing order from the High Court prevented the initiation of CIRP.
State Bank of India (SBI), the financial creditor, sanctioned credit facilities to Hanumanta Engineering Private Limited, the corporate debtor. These facilities included cash credit and export packing facilities, secured by hypothecation of raw materials, stocks, book debts, and mortgage of immovable properties. Over time, the credit limits were enhanced and restructured. The corporate debtor defaulted on repayment, leading to the account being classified as a Non-Performing Asset (NPA) on August 6, 2012. SBI issued a demand notice on January 10, 2013, but the corporate debtor failed to pay the outstanding amount. SBI filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) on August 10, 2018, seeking initiation of the Corporate Insolvency
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Financial Creditor sanctioned Cash Credit…
Financial Creditor sanctioned and/or allowed…
State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hanumanta Engineering Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's failure to comply with the terms and conditions of loan agreements and credit limits, resulting in a default of Rs. 173,85,76,484.56. The corporate debtor contested the application, arguing that the financial creditor suppressed facts, charged excessive interest rates, and that the application was barred by limitation. The corporate debtor also claimed that parallel proceedings were initiated by the financial creditor and that an existing order from the High Court prevented the initiation of CIRP.
State Bank of India (SBI), the financial creditor, sanctioned credit facilities to Hanumanta Engineering Private Limited, the corporate debtor. These facilities included cash credit and export packing facilities, secured by hypothecation of raw materials, stocks, book debts, and mortgage of immovable properties. Over time, the credit limits were enhanced and restructured. The corporate debtor defaulted on repayment, leading to the account being classified as a Non-Performing Asset (NPA) on August 6, 2012. SBI issued a demand notice on January 10, 2013, but the corporate debtor failed to pay the outstanding amount. SBI filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) on August 10, 2018, seeking initiation of the Corporate Insolvency
…Financial Creditor sanctioned Cash Credit…
Financial Creditor sanctioned and/or allowed…