The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Abhyudaya Co-operative Bank Ltd. (Financial Creditor) against Mithila Cars Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to default in repayment of financial debt. The Financial Creditor claimed that the Corporate Debtor defaulted on loan repayments, leading to the account being classified as Non-Performing Asset (NPA).
Abhyudaya Co-operative Bank Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Mithila Cars Pvt. Ltd. (Corporate Debtor). The Financial Creditor had sanctioned a term loan of Rs. 23,25,00,000/- to the Corporate Debtor vide sanction letter dated 03.04.2017. Subsequently, an amount of Rs. 16,50,00,000/- was further sanctioned vide sanction letter dated 21.08.2018, out of which Rs. 5 crores were disbursed, and the balance amount of Rs. 11,50,00,000/- was cancelled. A cash credit facility of Rs. 10 crores was also granted vide sanction letter dated 21.08.2018, but it was later cancelled. The account was declared NPA on 31.03.2019. As of 06.11.2019, the total outstanding against the Corporate Debtor, including
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The Financial Creditor sanctioned a term loan…
The Corporate Debtor executed various loan…
The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Abhyudaya Co-operative Bank Ltd. (Financial Creditor) against Mithila Cars Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to default in repayment of financial debt. The Financial Creditor claimed that the Corporate Debtor defaulted on loan repayments, leading to the account being classified as Non-Performing Asset (NPA).
Abhyudaya Co-operative Bank Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Mithila Cars Pvt. Ltd. (Corporate Debtor). The Financial Creditor had sanctioned a term loan of Rs. 23,25,00,000/- to the Corporate Debtor vide sanction letter dated 03.04.2017. Subsequently, an amount of Rs. 16,50,00,000/- was further sanctioned vide sanction letter dated 21.08.2018, out of which Rs. 5 crores were disbursed, and the balance amount of Rs. 11,50,00,000/- was cancelled. A cash credit facility of Rs. 10 crores was also granted vide sanction letter dated 21.08.2018, but it was later cancelled. The account was declared NPA on 31.03.2019. As of 06.11.2019, the total outstanding against the Corporate Debtor, including
…The Financial Creditor sanctioned a term loan…
The Corporate Debtor executed various loan…