The Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against S A Gold Ispat Pvt. Ltd., the corporate debtor, due to default in repayment of a working capital facility. The bank had sanctioned various credit facilities to the corporate debtor, which later became irregular, leading to the account being declared as NPA. The bank issued recall notices and a demand notice under Section 13(2) of the SARFAESI Act. The corporate debtor contended that there was a pre-existing dispute and a pending OTS proposal, which should bar the initiation of CIRP.
Jammu & Kashmir Bank Ltd. (the petitioner/financial creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against S A Gold Ispat Pvt. Ltd. (the respondent/corporate debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The corporate debtor had approached the bank for a working capital facility of ₹3.20 Crores, which was sanctioned on 08.05.2009. The credit facility was later enhanced to ₹6 Crores on 01.10.2010 and further to ₹12 Crores. Due to devastating floods in Kashmir in September 2014, a rehabilitation/restructuring scheme was introduced, and the corporate debtor availed a Working Capital Facility of ₹9 Crores. The loan accounts became irregular, and the bank declared the account as NPA on 31.03.2016. The
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The petitioner-financial creditor sanctioned a…
The aforesaid credit…
The Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against S A Gold Ispat Pvt. Ltd., the corporate debtor, due to default in repayment of a working capital facility. The bank had sanctioned various credit facilities to the corporate debtor, which later became irregular, leading to the account being declared as NPA. The bank issued recall notices and a demand notice under Section 13(2) of the SARFAESI Act. The corporate debtor contended that there was a pre-existing dispute and a pending OTS proposal, which should bar the initiation of CIRP.
Jammu & Kashmir Bank Ltd. (the petitioner/financial creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against S A Gold Ispat Pvt. Ltd. (the respondent/corporate debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The corporate debtor had approached the bank for a working capital facility of ₹3.20 Crores, which was sanctioned on 08.05.2009. The credit facility was later enhanced to ₹6 Crores on 01.10.2010 and further to ₹12 Crores. Due to devastating floods in Kashmir in September 2014, a rehabilitation/restructuring scheme was introduced, and the corporate debtor availed a Working Capital Facility of ₹9 Crores. The loan accounts became irregular, and the bank declared the account as NPA on 31.03.2016. The
…The petitioner-financial creditor sanctioned a…
The aforesaid credit…