The case involves a petition filed by PPG Asian Paints Private Limited (Financial Creditor) under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Bhagwati Cars Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a payment of ₹47,65,950/-. The Corporate Debtor denied any amount due, stating that the amount claimed was a one-time expenditure incurred by the Financial Creditor for its own business promotion.
PPG Asian Paints Private Limited (Financial Creditor) filed a petition under Section 7 of the IBC against Bhagwati Cars Private Limited (Corporate Debtor) seeking to initiate CIRP. The Financial Creditor claimed a default of ₹47,65,950/- based on a 'Body Shop Agreement' where the Financial Creditor provided a financial contribution of ₹40,00,000/- to the Corporate Debtor on 18.01.2018, along with service tax, for development and upgradation of automotive painting facilities. The agreement stipulated that the Corporate Debtor would purchase products from the Financial Creditor. The Corporate Debtor issued a Demand Promissory Note with 12% interest as collateral security. The Corporate Debtor failed to procure the agreed-upon products. The Financial Creditor issued legal
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Bhagwati Cars…
Execution of 'A Body Shop Agreement' between…
The case involves a petition filed by PPG Asian Paints Private Limited (Financial Creditor) under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Bhagwati Cars Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a payment of ₹47,65,950/-. The Corporate Debtor denied any amount due, stating that the amount claimed was a one-time expenditure incurred by the Financial Creditor for its own business promotion.
PPG Asian Paints Private Limited (Financial Creditor) filed a petition under Section 7 of the IBC against Bhagwati Cars Private Limited (Corporate Debtor) seeking to initiate CIRP. The Financial Creditor claimed a default of ₹47,65,950/- based on a 'Body Shop Agreement' where the Financial Creditor provided a financial contribution of ₹40,00,000/- to the Corporate Debtor on 18.01.2018, along with service tax, for development and upgradation of automotive painting facilities. The agreement stipulated that the Corporate Debtor would purchase products from the Financial Creditor. The Corporate Debtor issued a Demand Promissory Note with 12% interest as collateral security. The Corporate Debtor failed to procure the agreed-upon products. The Financial Creditor issued legal
…Bhagwati Cars…
Execution of 'A Body Shop Agreement' between…