Union Bank of India filed a Company Petition against Paramshakti Steels Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, alleging default in repayment of a sum of Rs. 35,88,82,988/- plus interest amounting to Rs. 4,55,68,672/- from 26.07.2016 to 31.03.2017. The Financial Creditor had sanctioned Letter of Credit and Cash Credit facilities to the Corporate Debtor, secured by various collaterals and personal guarantees. The Corporate Debtor defaulted on its payment obligations, leading to the petition.
Union Bank of India (Financial Creditor) sanctioned Rs.50,00,00,000/- as Letter of Credit facility and Rs.25,00,00,000/- as Cash Credit facility to Paramshakti Steels Ltd. (Corporate Debtor). These facilities were secured by collaterals including Land and Building, plant & machinery and FDR/Cash collateral belonging to the Corporate Debtor valued at Rs.113.53 crores and also on the personal guarantee of Mr. Vinod Garg, Director of the Corporate Debtor. The Corporate Debtor defaulted on 26.07.2016 in repaying a sum of Rs.35,88,82,988/- plus interest amounting to Rs.4,55,68,672/- from 26.07.2016 to 31.03.2017. The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor argued that the Power of Attorney
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Financial Creditor sanctioned…
Corporate Debtor defaulted on 26.07.2016 in…
Union Bank of India filed a Company Petition against Paramshakti Steels Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, alleging default in repayment of a sum of Rs. 35,88,82,988/- plus interest amounting to Rs. 4,55,68,672/- from 26.07.2016 to 31.03.2017. The Financial Creditor had sanctioned Letter of Credit and Cash Credit facilities to the Corporate Debtor, secured by various collaterals and personal guarantees. The Corporate Debtor defaulted on its payment obligations, leading to the petition.
Union Bank of India (Financial Creditor) sanctioned Rs.50,00,00,000/- as Letter of Credit facility and Rs.25,00,00,000/- as Cash Credit facility to Paramshakti Steels Ltd. (Corporate Debtor). These facilities were secured by collaterals including Land and Building, plant & machinery and FDR/Cash collateral belonging to the Corporate Debtor valued at Rs.113.53 crores and also on the personal guarantee of Mr. Vinod Garg, Director of the Corporate Debtor. The Corporate Debtor defaulted on 26.07.2016 in repaying a sum of Rs.35,88,82,988/- plus interest amounting to Rs.4,55,68,672/- from 26.07.2016 to 31.03.2017. The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor argued that the Power of Attorney
…Financial Creditor sanctioned…
Corporate Debtor defaulted on 26.07.2016 in…