SREI Equipment Finance Ltd., a financial creditor, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the reduction of its claim by the Resolution Professional (RP) of Sri Ganesh Sponge Iron Pvt. Ltd., a company undergoing Corporate Insolvency Resolution Process (CIRP). SREI claimed Rs. 6,77,07,586, but the RP admitted only Rs. 2,56,34,154, citing excessive overdue charges. SREI argued that the overdue charges were in line with RBI circulars and the loan agreement. The RP contended that the overdue charges were extortionate and relied on the NBFC Fair Practices Code and the Usurious Loan Act, 1918. The applicant sought an order to set aside the RP's decision, restore the full claim, and grant a seat in the Committee of
…SREI Equipment Finance Ltd. (the Applicant) is a financial creditor of Sri Ganesh Sponge Iron Pvt. Ltd. (Corporate Debtor). A loan agreement was executed between SREI and Sri Ganesh Sponge Iron Pvt. Ltd. on June 30, 2012. CIRP was initiated against the Corporate Debtor, and the RP was appointed. SREI filed a claim of Rs. 6,77,07,586, which included overdue charges. The RP admitted only Rs. 2,56,34,154, rejecting the overdue charges. The RP stated in an email dated May 27, 2019, that the overdue charges are extortionate. SREI argued that the charges were in line with RBI circulars. The RP relied on the NBFC Fair Practices Code and the Usurious Loan Act, 1918. The applicant has sold one of the assets under the loan agreement for Rs. 19.00 lakh but not disclosed the same
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SREI Equipment Finance…
Sri Ganesh Spo…
SREI Equipment Finance Ltd., a financial creditor, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the reduction of its claim by the Resolution Professional (RP) of Sri Ganesh Sponge Iron Pvt. Ltd., a company undergoing Corporate Insolvency Resolution Process (CIRP). SREI claimed Rs. 6,77,07,586, but the RP admitted only Rs. 2,56,34,154, citing excessive overdue charges. SREI argued that the overdue charges were in line with RBI circulars and the loan agreement. The RP contended that the overdue charges were extortionate and relied on the NBFC Fair Practices Code and the Usurious Loan Act, 1918. The applicant sought an order to set aside the RP's decision, restore the full claim, and grant a seat in the Committee of
…SREI Equipment Finance Ltd. (the Applicant) is a financial creditor of Sri Ganesh Sponge Iron Pvt. Ltd. (Corporate Debtor). A loan agreement was executed between SREI and Sri Ganesh Sponge Iron Pvt. Ltd. on June 30, 2012. CIRP was initiated against the Corporate Debtor, and the RP was appointed. SREI filed a claim of Rs. 6,77,07,586, which included overdue charges. The RP admitted only Rs. 2,56,34,154, rejecting the overdue charges. The RP stated in an email dated May 27, 2019, that the overdue charges are extortionate. SREI argued that the charges were in line with RBI circulars. The RP relied on the NBFC Fair Practices Code and the Usurious Loan Act, 1918. The applicant has sold one of the assets under the loan agreement for Rs. 19.00 lakh but not disclosed the same
…SREI Equipment Finance…
Sri Ganesh Spo…