The case involves an application filed by Noor Alam, representing 27 financial creditors, to initiate the Corporate Insolvency Resolution Process (CIRP) against Prism Infracon Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors claim default in payment of the redemption amount due on debentures issued by Prism Infracon. The corporate debtor opposed the application, arguing that an alternative remedy was available under the Companies Act, 2013, and that the application was intended to coerce the corporate debtor.
Noor Alam, representing 27 financial creditors, filed an application to initiate CIRP against Prism Infracon Limited under Section 7 of the IBC, 2016. The financial creditors had invested an aggregate sum of Rs. 40,03,000/- between March 2011 and September 2012 in the corporate debtor, who issued secured redeemable non-convertible debentures. The corporate debtor defaulted on the redemption amount of Rs. 49,16,000/-, plus interest, totaling Rs. 55,67,420/- as of November 30, 2017. The corporate debtor opposed the application, claiming an alternative remedy under the Companies Act and alleging coercion. The corporate debtor also claimed that Noor Alam had taken advances that could be set off against the debt, but no records supported this claim. The corporate debtor
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Prism Infracon…
Financial creditors invested in the corporate…
The case involves an application filed by Noor Alam, representing 27 financial creditors, to initiate the Corporate Insolvency Resolution Process (CIRP) against Prism Infracon Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors claim default in payment of the redemption amount due on debentures issued by Prism Infracon. The corporate debtor opposed the application, arguing that an alternative remedy was available under the Companies Act, 2013, and that the application was intended to coerce the corporate debtor.
Noor Alam, representing 27 financial creditors, filed an application to initiate CIRP against Prism Infracon Limited under Section 7 of the IBC, 2016. The financial creditors had invested an aggregate sum of Rs. 40,03,000/- between March 2011 and September 2012 in the corporate debtor, who issued secured redeemable non-convertible debentures. The corporate debtor defaulted on the redemption amount of Rs. 49,16,000/-, plus interest, totaling Rs. 55,67,420/- as of November 30, 2017. The corporate debtor opposed the application, claiming an alternative remedy under the Companies Act and alleging coercion. The corporate debtor also claimed that Noor Alam had taken advances that could be set off against the debt, but no records supported this claim. The corporate debtor
…Prism Infracon…
Financial creditors invested in the corporate…