The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by Mr. Shaikh Mohammad Tariq against Aegis Forging Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, Mr. Tariq, had provided a personal guarantee to the creditors/investors of Aegis Forging Ltd. for funds taken to purchase land and building. The Corporate Debtor allegedly failed to provide a cash security of Rs. 60,00,000/- as assured, and the Sole Arbitrator passed an award directing the Corporate Debtor to pay cash security of Rs.3,64,58,785/- with accrued interest. The Financial Creditor issued letters demanding the amount as per the arbitration award, totaling Rs.5,43,12,602/-.
In June 2013, the Financial Creditor, Shaikh Mohammad Tariq, entered into an agreement with the Corporate Debtor, Aegis Forging Limited, to provide a personal guarantee to the Corporate Debtor's creditors/investors for funds used to purchase land and building. The Corporate Debtor assured the Financial Creditor that it would provide a cash security along with interest if it failed to relieve the Financial Creditor of the personal guarantee. The amount of cash security was agreed to be Rs. 60,00,000/-, but the Corporate Debtor failed to provide it, even after the Financial Creditor granted an extension of time. A Sole Arbitrator passed an award on 2013-11-11, directing the Corporate Debtor to pay cash security of Rs.3,64,58,785/- with accrued interest. The Financial
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The Financial Creditor entered into an agreement…
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The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by Mr. Shaikh Mohammad Tariq against Aegis Forging Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, Mr. Tariq, had provided a personal guarantee to the creditors/investors of Aegis Forging Ltd. for funds taken to purchase land and building. The Corporate Debtor allegedly failed to provide a cash security of Rs. 60,00,000/- as assured, and the Sole Arbitrator passed an award directing the Corporate Debtor to pay cash security of Rs.3,64,58,785/- with accrued interest. The Financial Creditor issued letters demanding the amount as per the arbitration award, totaling Rs.5,43,12,602/-.
In June 2013, the Financial Creditor, Shaikh Mohammad Tariq, entered into an agreement with the Corporate Debtor, Aegis Forging Limited, to provide a personal guarantee to the Corporate Debtor's creditors/investors for funds used to purchase land and building. The Corporate Debtor assured the Financial Creditor that it would provide a cash security along with interest if it failed to relieve the Financial Creditor of the personal guarantee. The amount of cash security was agreed to be Rs. 60,00,000/-, but the Corporate Debtor failed to provide it, even after the Financial Creditor granted an extension of time. A Sole Arbitrator passed an award on 2013-11-11, directing the Corporate Debtor to pay cash security of Rs.3,64,58,785/- with accrued interest. The Financial
…The Financial Creditor entered into an agreement…
The Sole Arbitrator passed an award directing…
Sign in to view related legal provisions.