The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. My Choice Knit & Apparels Pvt. Ltd. The applicant, M/s. Bannari Amman Spinning Mills Ltd., claimed that the corporate debtor defaulted on a payment of Rs. 1,07,27,295/-, which included principal and interest. The corporate debtor opposed the petition, citing financial distress and MSME status. The Adjudicating Authority initially dismissed the petition, but the NCLAT set aside the order and remitted the case back to the Adjudicating Authority for admission under Section 9 of the I&B Code.
M/s. Bannari Amman Spinning Mills Ltd. (Operational Creditor) filed a C.P. (IB) No.136/BB/2018 under Section 9 of the IBC, claiming that M/s. My Choice Knit & Apparels Pvt. Ltd. (Corporate Debtor) defaulted on a payment of Rs. 1,07,27,295/-. The amount included principal and interest at 24% p.a. The Operational Creditor issued a demand notice on 23.03.2017 for Rs.79,57,794/- plus Rs.27,69,501/- as interest. The Corporate Debtor denied the entire amount, claiming a Letter of Credit was opened for Rs.48,80,396/- but was returned due to invoice dates. The Corporate Debtor acknowledged owing Rs.79,57,794/- but was only willing to pay Rs.30,77,398/-, wanting the Operational Creditor to claim Rs.48,80,396/- from the Letter of Credit. The Operational Creditor also served
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M/s. Bannari Amman…
M/s. My Choice Knit and…
The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. My Choice Knit & Apparels Pvt. Ltd. The applicant, M/s. Bannari Amman Spinning Mills Ltd., claimed that the corporate debtor defaulted on a payment of Rs. 1,07,27,295/-, which included principal and interest. The corporate debtor opposed the petition, citing financial distress and MSME status. The Adjudicating Authority initially dismissed the petition, but the NCLAT set aside the order and remitted the case back to the Adjudicating Authority for admission under Section 9 of the I&B Code.
M/s. Bannari Amman Spinning Mills Ltd. (Operational Creditor) filed a C.P. (IB) No.136/BB/2018 under Section 9 of the IBC, claiming that M/s. My Choice Knit & Apparels Pvt. Ltd. (Corporate Debtor) defaulted on a payment of Rs. 1,07,27,295/-. The amount included principal and interest at 24% p.a. The Operational Creditor issued a demand notice on 23.03.2017 for Rs.79,57,794/- plus Rs.27,69,501/- as interest. The Corporate Debtor denied the entire amount, claiming a Letter of Credit was opened for Rs.48,80,396/- but was returned due to invoice dates. The Corporate Debtor acknowledged owing Rs.79,57,794/- but was only willing to pay Rs.30,77,398/-, wanting the Operational Creditor to claim Rs.48,80,396/- from the Letter of Credit. The Operational Creditor also served
…M/s. Bannari Amman…
M/s. My Choice Knit and…