Sowcar Electricals Private Limited (Corporate Applicant/Debtor), an MSME engaged in trading electrical appliances, filed for Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The company faced severe financial distress due to the Covid-19 pandemic, which led to sundry debtors dying or closing businesses, and internal management disputes. This resulted in an inability to repay its financial and operational creditors, with a total debt of Rs. 5,94,96,000/-, exceeding the prescribed threshold for initiating CIRP.
Sowcar Electricals Private Limited (Corporate Applicant) filed for Corporate Insolvency Resolution Process (CIRP) under Section 10 of the IBC, 2016.
The company was incorporated on 23.11.2005 and is registered as an MSME under the MSMED Act, 2006.
It is engaged in the business of trading, import, and export of electrical appliances and electronic goods.
Due to the Covid-19 pandemic, sundry debtors owed to the company died or closed their businesses, leading to an inability to repay debts.
The Corporate Debtor owes a total sum of Rs. 5,94,96,000/- to its financial and operational creditors.
There is a financial default of Rs. 1,44,54,582/-, including Rs. 1,38,60,000/- to financial creditors and Rs. 94,582/- to Urgo Capital for EMI payment.
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Sowcar Electricals…
The Board of Directors passed a resolution to…
Sowcar Electricals Private Limited (Corporate Applicant/Debtor), an MSME engaged in trading electrical appliances, filed for Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The company faced severe financial distress due to the Covid-19 pandemic, which led to sundry debtors dying or closing businesses, and internal management disputes. This resulted in an inability to repay its financial and operational creditors, with a total debt of Rs. 5,94,96,000/-, exceeding the prescribed threshold for initiating CIRP.
Sowcar Electricals Private Limited (Corporate Applicant) filed for Corporate Insolvency Resolution Process (CIRP) under Section 10 of the IBC, 2016.
The company was incorporated on 23.11.2005 and is registered as an MSME under the MSMED Act, 2006.
It is engaged in the business of trading, import, and export of electrical appliances and electronic goods.
Due to the Covid-19 pandemic, sundry debtors owed to the company died or closed their businesses, leading to an inability to repay debts.
The Corporate Debtor owes a total sum of Rs. 5,94,96,000/- to its financial and operational creditors.
There is a financial default of Rs. 1,44,54,582/-, including Rs. 1,38,60,000/- to financial creditors and Rs. 94,582/- to Urgo Capital for EMI payment.
…Sowcar Electricals…
The Board of Directors passed a resolution to…