Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against K.K. Gifts Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had sanctioned a cash credit limit to the Corporate Debtor, which the Corporate Debtor defaulted on repayment. The Financial Creditor classified the account as a Non-Performing Asset (NPA) and issued a recall notice. The Corporate Debtor argued that the Bank did not disburse the amount in terms of the sanction letter, hindering their ability to utilize the funds effectively.
Union Bank of India sanctioned a cash credit limit of Rs.4,00,00,000/- to K.K. Gifts Private Limited at an interest rate of 13.25% per annum. This was documented in a sanction letter dated March 27, 2014, and later renewed. The credit limit was initially Rs.2,85,00,000/- with State Bank of India, Bhowanipore Branch, Kolkata, before being taken over. The Corporate Debtor defaulted on repayment, leading to the account being classified as a Non-Performing Asset (NPA) on January 30, 2016. A recall notice was issued on February 5, 2016, demanding Rs.4,11,04,970.15. The Financial Creditor had secured the loan with various documents, including hypothecation of stock and book debts, collateral securities, and personal guarantees. The Financial Creditor also presented
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Union Bank of India sanctioned cash credit…
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Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against K.K. Gifts Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had sanctioned a cash credit limit to the Corporate Debtor, which the Corporate Debtor defaulted on repayment. The Financial Creditor classified the account as a Non-Performing Asset (NPA) and issued a recall notice. The Corporate Debtor argued that the Bank did not disburse the amount in terms of the sanction letter, hindering their ability to utilize the funds effectively.
Union Bank of India sanctioned a cash credit limit of Rs.4,00,00,000/- to K.K. Gifts Private Limited at an interest rate of 13.25% per annum. This was documented in a sanction letter dated March 27, 2014, and later renewed. The credit limit was initially Rs.2,85,00,000/- with State Bank of India, Bhowanipore Branch, Kolkata, before being taken over. The Corporate Debtor defaulted on repayment, leading to the account being classified as a Non-Performing Asset (NPA) on January 30, 2016. A recall notice was issued on February 5, 2016, demanding Rs.4,11,04,970.15. The Financial Creditor had secured the loan with various documents, including hypothecation of stock and book debts, collateral securities, and personal guarantees. The Financial Creditor also presented
…Union Bank of India sanctioned cash credit…
Release of en…