Prayag Polytech Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate corporate insolvency resolution process (CIRP) against Bon Lon Petrochem LLP for alleged default in settling dues of Rs. 1,88,33,978/-, including interest. Prayag Polytech claimed to have advanced a loan to Bon Lon Petrochem, repayable on demand with interest. Bon Lon Petrochem argued that the amount was intended as a long-term investment, not a loan, and that disputes existed between the directors of Prayag Polytech.
Prayag Polytech Private Limited (Applicant) claimed to have advanced a loan of Rs. 1,88,33,978/- to Bon Lon Petrochem LLP (Respondent), including interest. The loan was allegedly repayable on demand. Prayag Polytech sent a recall notice dated January 2, 2019, requesting repayment. Bon Lon Petrochem contended that the amount was intended as a long-term investment for over 10 years, not a loan, and that no borrowing was ever sought. Bon Lon Petrochem also argued that Prayag Polytech intended to become a partner in the company. The respondent company passed entries in their books of account and accordingly remitted TDS in the name of the Petitioner company and showed the said money as interest accrued as long-term liability. The Respondent also claimed that disputes arose
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Prayag Polytech sent a recall notice to Bon…
Bon Lon Petrochem filed…
Prayag Polytech Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate corporate insolvency resolution process (CIRP) against Bon Lon Petrochem LLP for alleged default in settling dues of Rs. 1,88,33,978/-, including interest. Prayag Polytech claimed to have advanced a loan to Bon Lon Petrochem, repayable on demand with interest. Bon Lon Petrochem argued that the amount was intended as a long-term investment, not a loan, and that disputes existed between the directors of Prayag Polytech.
Prayag Polytech Private Limited (Applicant) claimed to have advanced a loan of Rs. 1,88,33,978/- to Bon Lon Petrochem LLP (Respondent), including interest. The loan was allegedly repayable on demand. Prayag Polytech sent a recall notice dated January 2, 2019, requesting repayment. Bon Lon Petrochem contended that the amount was intended as a long-term investment for over 10 years, not a loan, and that no borrowing was ever sought. Bon Lon Petrochem also argued that Prayag Polytech intended to become a partner in the company. The respondent company passed entries in their books of account and accordingly remitted TDS in the name of the Petitioner company and showed the said money as interest accrued as long-term liability. The Respondent also claimed that disputes arose
…Prayag Polytech sent a recall notice to Bon…
Bon Lon Petrochem filed…