Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against KSM Spinning Mills Limited, the Corporate Debtor, due to default in repayment of loan. The Corporate Debtor had approached the financial creditor for credit facilities, which were granted. The account was declared NPA on 03.11.2015. The financial creditor also issued demand notices under Section 13(2) and 13(4) of the SARFAESI Act. The Corporate Debtor submitted that a settlement proposal was pending consideration and that the account was eligible for restructuring as per RBI guidelines.
Central Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against KSM Spinning Mills Limited, the corporate debtor. The corporate debtor had approached the financial creditor for credit facilities, which were granted. The total sanctioned credit limit was ₹32.50 crores as per sanction letter dated 03.02.2014. The account of the corporate debtor was declared NPA on 03.11.2015. The total outstanding as on 05.07.2018, including interest and expenses, was stated to be ₹51,15,68,081.29. The credit facilities were secured by way of equitable mortgage. Demand notices under Section 13(2) of the SARFAESI Act, 2002, dated 25.03.2016, and Section 13(4)
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The loan account of the…
Demand notice under Section 13(2) of the…
Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against KSM Spinning Mills Limited, the Corporate Debtor, due to default in repayment of loan. The Corporate Debtor had approached the financial creditor for credit facilities, which were granted. The account was declared NPA on 03.11.2015. The financial creditor also issued demand notices under Section 13(2) and 13(4) of the SARFAESI Act. The Corporate Debtor submitted that a settlement proposal was pending consideration and that the account was eligible for restructuring as per RBI guidelines.
Central Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against KSM Spinning Mills Limited, the corporate debtor. The corporate debtor had approached the financial creditor for credit facilities, which were granted. The total sanctioned credit limit was ₹32.50 crores as per sanction letter dated 03.02.2014. The account of the corporate debtor was declared NPA on 03.11.2015. The total outstanding as on 05.07.2018, including interest and expenses, was stated to be ₹51,15,68,081.29. The credit facilities were secured by way of equitable mortgage. Demand notices under Section 13(2) of the SARFAESI Act, 2002, dated 25.03.2016, and Section 13(4)
…The loan account of the…
Demand notice under Section 13(2) of the…