Asmitha Microfin Ltd filed a petition under Section 10 of the Insolvency and Bankruptcy Code (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company, a Non-Banking Financial Institution (NBFC), claimed default in payment of an alleged debt of Rs. 143,69,07,866/-. The Reserve Bank of India (RBI) was impleaded as a respondent. Several financial creditors, including SIDBI, PNB, SBI, and Kotak Mahindra Bank, filed counters objecting to the petition, primarily arguing that Asmitha Microfin is a Financial Service Provider (FSP) and thus ineligible for CIRP under Section 3(17) of the IBC. The RBI had previously cancelled Asmitha Microfin's NBFC registration and directed it to dispose of its financial assets.
Asmitha Microfin Ltd., a registered NBFC, filed a petition under Section 10 of the IBC seeking CIRP due to an alleged debt of Rs. 143,69,07,866/-. The company was incorporated in 2001 and operated in 14 states until 2010, when the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending Act) impacted its recovery. The company's loans were restructured in 2011 under Corporate Debt Restructuring (CDR). The RBI cancelled Asmitha Microfin's NBFC registration on 22.02.2019 due to non-compliance. The company received default notices from several banks. The affairs of the company were deliberated in a Joint Lenders Meeting on 19.04.2021, leading to the decision to file the IBC application. The RBI was impleaded as a respondent. Several financial creditors,
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Asmitha Microfin Ltd. was incorporated with…
The enactment of the Andhra Pradesh…
Asmitha Microfin Ltd filed a petition under Section 10 of the Insolvency and Bankruptcy Code (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company, a Non-Banking Financial Institution (NBFC), claimed default in payment of an alleged debt of Rs. 143,69,07,866/-. The Reserve Bank of India (RBI) was impleaded as a respondent. Several financial creditors, including SIDBI, PNB, SBI, and Kotak Mahindra Bank, filed counters objecting to the petition, primarily arguing that Asmitha Microfin is a Financial Service Provider (FSP) and thus ineligible for CIRP under Section 3(17) of the IBC. The RBI had previously cancelled Asmitha Microfin's NBFC registration and directed it to dispose of its financial assets.
Asmitha Microfin Ltd., a registered NBFC, filed a petition under Section 10 of the IBC seeking CIRP due to an alleged debt of Rs. 143,69,07,866/-. The company was incorporated in 2001 and operated in 14 states until 2010, when the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending Act) impacted its recovery. The company's loans were restructured in 2011 under Corporate Debt Restructuring (CDR). The RBI cancelled Asmitha Microfin's NBFC registration on 22.02.2019 due to non-compliance. The company received default notices from several banks. The affairs of the company were deliberated in a Joint Lenders Meeting on 19.04.2021, leading to the decision to file the IBC application. The RBI was impleaded as a respondent. Several financial creditors,
…Asmitha Microfin Ltd. was incorporated with…
The enactment of the Andhra Pradesh…