Punjab National Bank (PNB) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Vallabh Textiles Company Limited (Corporate Debtor). PNB claimed that the corporate debtor defaulted on its loan obligations. The corporate debtor was originally granted a loan on 29.11.2007, with the last sanction on 22.02.2017, resulting in a total sanctioned credit limit of ₹179.83 crores. The corporate debtor failed to pay interest and installments regularly, leading to the account being classified as NPA on 31.03.2018. PNB issued a notice under Section 13(2) of the SARFAESI Act, 2002, claiming a default of ₹157,52,69,715/-.
Punjab National Bank (PNB) extended credit facilities to Vallabh Textiles Company Limited, with the last sanction occurring on February 22, 2017, bringing the total sanctioned credit limit to ₹179.83 crores. These facilities included term loans and cash credit. To secure the loan, the corporate debtor created an equitable mortgage of various properties. The corporate debtor defaulted on payments, leading PNB to classify the account as a Non-Performing Asset (NPA) on March 31, 2018. PNB issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, claiming ₹157,52,69,715/- as outstanding. As of October 8, 2018, the outstanding amount was ₹167,04,29,627.58/-. The corporate debtor admitted to the sanctioned credit limit and NPA classification but claimed to have
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Punjab Nation…
Vallabh Textiles…
Punjab National Bank (PNB) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Vallabh Textiles Company Limited (Corporate Debtor). PNB claimed that the corporate debtor defaulted on its loan obligations. The corporate debtor was originally granted a loan on 29.11.2007, with the last sanction on 22.02.2017, resulting in a total sanctioned credit limit of ₹179.83 crores. The corporate debtor failed to pay interest and installments regularly, leading to the account being classified as NPA on 31.03.2018. PNB issued a notice under Section 13(2) of the SARFAESI Act, 2002, claiming a default of ₹157,52,69,715/-.
Punjab National Bank (PNB) extended credit facilities to Vallabh Textiles Company Limited, with the last sanction occurring on February 22, 2017, bringing the total sanctioned credit limit to ₹179.83 crores. These facilities included term loans and cash credit. To secure the loan, the corporate debtor created an equitable mortgage of various properties. The corporate debtor defaulted on payments, leading PNB to classify the account as a Non-Performing Asset (NPA) on March 31, 2018. PNB issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, claiming ₹157,52,69,715/- as outstanding. As of October 8, 2018, the outstanding amount was ₹167,04,29,627.58/-. The corporate debtor admitted to the sanctioned credit limit and NPA classification but claimed to have
…Punjab Nation…
Vallabh Textiles…