The case involves multiple applications (I.A.Nos.87, 443 of 2020 and I.A.No.29 of 2021) filed in relation to a Corporate Insolvency Resolution Process (CIRP) initiated against Scotts Garments Limited. Canara Bank, the financial creditor, initially sought to withdraw I.A.No.87 of 2020 and initiate liquidation proceedings. Linen Art Private Limited, the Resolution Applicant, filed I.A.No.29 of 2021 seeking directions for the respondents to consider a modified resolution plan. The original resolution plan was approved on 16.09.2019, but challenges arose due to the COVID-19 pandemic and a forensic audit initiated by SBI. The Resolution Applicant has disbursed Rs.28.05 Crores towards CIRP costs, employee dues, and refurbishments.
Saravana Distributors initially filed C.P.(IB)No.68/BB/2018 under Section 9 of the IBC, leading to the initiation of CIRP against Scotts Garments Limited, the Corporate Debtor. The CIRP was admitted on 13.08.2018. Linen Art Private Limited submitted a resolution plan, approved on 16.09.2019, with payments due by May 2022. State Bank of India (SBI) challenged the allocation in the plan before NCLAT. After plan approval, SBI requested a forensic audit, causing the Resolution Applicant to halt payments. The Resolution Applicant disbursed Rs.28.05 Crores in 2020 towards CIRP costs, employee dues, and refurbishments. The Resolution Applicant proposed revisions to the plan, including upfront payment of Rs.35 Crores and a revised payment schedule. Canara Bank sought to
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The case involves multiple applications (I.A.Nos.87, 443 of 2020 and I.A.No.29 of 2021) filed in relation to a Corporate Insolvency Resolution Process (CIRP) initiated against Scotts Garments Limited. Canara Bank, the financial creditor, initially sought to withdraw I.A.No.87 of 2020 and initiate liquidation proceedings. Linen Art Private Limited, the Resolution Applicant, filed I.A.No.29 of 2021 seeking directions for the respondents to consider a modified resolution plan. The original resolution plan was approved on 16.09.2019, but challenges arose due to the COVID-19 pandemic and a forensic audit initiated by SBI. The Resolution Applicant has disbursed Rs.28.05 Crores towards CIRP costs, employee dues, and refurbishments.
Saravana Distributors initially filed C.P.(IB)No.68/BB/2018 under Section 9 of the IBC, leading to the initiation of CIRP against Scotts Garments Limited, the Corporate Debtor. The CIRP was admitted on 13.08.2018. Linen Art Private Limited submitted a resolution plan, approved on 16.09.2019, with payments due by May 2022. State Bank of India (SBI) challenged the allocation in the plan before NCLAT. After plan approval, SBI requested a forensic audit, causing the Resolution Applicant to halt payments. The Resolution Applicant disbursed Rs.28.05 Crores in 2020 towards CIRP costs, employee dues, and refurbishments. The Resolution Applicant proposed revisions to the plan, including upfront payment of Rs.35 Crores and a revised payment schedule. Canara Bank sought to
…The Adjudicating…
The Resolution…