The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by JM Financial Asset Reconstruction Company Limited (acting as trustee of Hotel II May, 2022 Trust) against Asian Hotel (West) Limited ('Corporate Debtor') for default in repayment of financial debt. The original petition was filed by Yes Bank Limited, which later assigned the debt to JM Financial Asset Reconstruction Company Limited. The corporate debtor's registered office is in New Delhi, giving the NCLT Delhi jurisdiction.
Yes Bank Limited originally extended credit facilities to Asian Hotel (West) Limited, the corporate debtor, up to Rs.2,15,00,00,000. These facilities included term loans, overdraft facilities, letters of credit, and financial/performance bank guarantees. The corporate debtor defaulted on repayments, leading to the account being classified as a Non-Performing Asset (NPA) on 2021-07-27. Yes Bank assigned the debt to JM Financial Asset Reconstruction Company Limited on 2022-06-21. The corporate debtor argued that the petition was filed without proper authorization, that parallel proceedings under SARFAESI Act were ongoing, and that the petitioner unlawfully refused to release funds under the Emergency Credit Line Guarantee Scheme (ECLGS). The corporate debtor also claimed
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The credit fac…
The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by JM Financial Asset Reconstruction Company Limited (acting as trustee of Hotel II May, 2022 Trust) against Asian Hotel (West) Limited ('Corporate Debtor') for default in repayment of financial debt. The original petition was filed by Yes Bank Limited, which later assigned the debt to JM Financial Asset Reconstruction Company Limited. The corporate debtor's registered office is in New Delhi, giving the NCLT Delhi jurisdiction.
Yes Bank Limited originally extended credit facilities to Asian Hotel (West) Limited, the corporate debtor, up to Rs.2,15,00,00,000. These facilities included term loans, overdraft facilities, letters of credit, and financial/performance bank guarantees. The corporate debtor defaulted on repayments, leading to the account being classified as a Non-Performing Asset (NPA) on 2021-07-27. Yes Bank assigned the debt to JM Financial Asset Reconstruction Company Limited on 2022-06-21. The corporate debtor argued that the petition was filed without proper authorization, that parallel proceedings under SARFAESI Act were ongoing, and that the petitioner unlawfully refused to release funds under the Emergency Credit Line Guarantee Scheme (ECLGS). The corporate debtor also claimed
…The corporate debtor…
The credit fac…