The case involves an application for amendment in the main IB petition No. 219/ALD/2019. A formal notice to the Corporate Debtor has not yet been issued. The court considered the submission of the learned PCS for the Petitioner alone. The amendment sought in the IB Petition appears reasonable and bonafide and does not change the nature of the proceeding. The Financial Creditor (FC), an NBFC, has advanced a loan of Rs. 6.75 crores to the Corporate Debtor based on an oral request without a written agreement or document demanding the loan.
Avail Financial Services Ltd filed an IB petition against Sunworld City Pvt Ltd. The Financial Creditor (FC), Avail Financial Services Ltd, an NBFC, claims to have advanced a loan of Rs. 6.75 crores to the Corporate Debtor, Sunworld City Pvt Ltd, based on an oral request without any written agreement. The FC sought an amendment to the main IB petition. The court observed that no formal notice had been issued to the Corporate Debtor. The court also raised concerns about the FC's motives, suggesting the application might be for recovery rather than resolution, potentially violating the intent of the IBC. The relevance of the oral agreement is that it raises questions about the validity and enforceability of the debt, and the FC's motives in initiating the insolvency
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Hearing of Allahabad…
Matter list…
The case involves an application for amendment in the main IB petition No. 219/ALD/2019. A formal notice to the Corporate Debtor has not yet been issued. The court considered the submission of the learned PCS for the Petitioner alone. The amendment sought in the IB Petition appears reasonable and bonafide and does not change the nature of the proceeding. The Financial Creditor (FC), an NBFC, has advanced a loan of Rs. 6.75 crores to the Corporate Debtor based on an oral request without a written agreement or document demanding the loan.
Avail Financial Services Ltd filed an IB petition against Sunworld City Pvt Ltd. The Financial Creditor (FC), Avail Financial Services Ltd, an NBFC, claims to have advanced a loan of Rs. 6.75 crores to the Corporate Debtor, Sunworld City Pvt Ltd, based on an oral request without any written agreement. The FC sought an amendment to the main IB petition. The court observed that no formal notice had been issued to the Corporate Debtor. The court also raised concerns about the FC's motives, suggesting the application might be for recovery rather than resolution, potentially violating the intent of the IBC. The relevance of the oral agreement is that it raises questions about the validity and enforceability of the debt, and the FC's motives in initiating the insolvency
…Hearing of Allahabad…
Matter list…