The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Smt. Krishna Garg and Shri B.L. Garg (Financial Creditors/Applicants) against Pioneer Fabricators Private Limited (Corporate Debtor). The applicants claim that they deposited sums of Rs. 3.00 Lacs and Rs. 2.00 Lacs, respectively, with the Corporate Debtor in 1999 at a 15% interest rate per annum. The deposit period was extended twice due to friendly terms. The Corporate Debtor made partial payments, including Rs. 43,750/- to Applicant No. 1 and Rs. 1,00,000/- to Applicant No. 2. However, the Corporate Debtor failed to repay the balance amount along with interest.
In 1999, Smt. Krishna Garg deposited Rs. 3.00 Lacs and Shri B.L. Garg deposited Rs. 2.00 Lacs with Pioneer Fabricators Private Limited at 15% interest per annum. The deposit period was extended twice. Pioneer Fabricators made partial payments: Rs. 43,750/- to Krishna Garg and Rs. 1,00,000/- to B.L. Garg. Pioneer Fabricators failed to repay the remaining amount with interest. Krishna Garg and B.L. Garg filed a consumer complaint, which was allowed on 14.03.2018. Pioneer Fabricators claimed the deposits were loans. The total defaulted amount as of 31.03.2018 was Rs. 28,70,675/- for Krishna Garg and Rs. 9,43,366/- for B.L. Garg. Pioneer Fabricators argued the Limitation Act applied, the consumer complaint was stayed, and the applicants sought similar relief from two
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Smt. Krishna Garg and Shri B.L. Garg…
Pioneer Fabricators…
The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Smt. Krishna Garg and Shri B.L. Garg (Financial Creditors/Applicants) against Pioneer Fabricators Private Limited (Corporate Debtor). The applicants claim that they deposited sums of Rs. 3.00 Lacs and Rs. 2.00 Lacs, respectively, with the Corporate Debtor in 1999 at a 15% interest rate per annum. The deposit period was extended twice due to friendly terms. The Corporate Debtor made partial payments, including Rs. 43,750/- to Applicant No. 1 and Rs. 1,00,000/- to Applicant No. 2. However, the Corporate Debtor failed to repay the balance amount along with interest.
In 1999, Smt. Krishna Garg deposited Rs. 3.00 Lacs and Shri B.L. Garg deposited Rs. 2.00 Lacs with Pioneer Fabricators Private Limited at 15% interest per annum. The deposit period was extended twice. Pioneer Fabricators made partial payments: Rs. 43,750/- to Krishna Garg and Rs. 1,00,000/- to B.L. Garg. Pioneer Fabricators failed to repay the remaining amount with interest. Krishna Garg and B.L. Garg filed a consumer complaint, which was allowed on 14.03.2018. Pioneer Fabricators claimed the deposits were loans. The total defaulted amount as of 31.03.2018 was Rs. 28,70,675/- for Krishna Garg and Rs. 9,43,366/- for B.L. Garg. Pioneer Fabricators argued the Limitation Act applied, the consumer complaint was stayed, and the applicants sought similar relief from two
…Smt. Krishna Garg and Shri B.L. Garg…
Pioneer Fabricators…