The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Assets Reconstruction Company (India) Limited (Assignee of South India Bank Limited) against Bilcare Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 01.07.1987. The Financial Creditor claimed a default of Rs. 235,29,34,240 as on 15.12.2019. The Corporate Debtor raised objections, including the existence of a separate settlement sanction, the company being declared as a relief undertaking under the Maharashtra Relief Undertakings (Special Provisions) Act, 1958, absence of proper authority for filing the application, and the debt not being a financial debt under Section 5(8) of the IBC.
Assets Reconstruction Company (India) Limited, as the assignee of South Indian Bank Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bilcare Limited. The Corporate Debtor, Bilcare Limited, was incorporated on July 1, 1987. The Financial Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 235,29,34,240 as of December 15, 2019. The debt arose from a Standby Letter of Credit (SBLC) facility sanctioned by South Indian Bank to Bilcare Limited in October 2013 for USD 21,700,000. The SBLC facility was valid for 5 years with a bullet repayment at the end of the term. The Assignor Bank and the Corporate Debtor executed a Credit Facility Agreement dated
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South Indian Bank sanctioned a Standby Letter…
The Assignor Bank and…
The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Assets Reconstruction Company (India) Limited (Assignee of South India Bank Limited) against Bilcare Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 01.07.1987. The Financial Creditor claimed a default of Rs. 235,29,34,240 as on 15.12.2019. The Corporate Debtor raised objections, including the existence of a separate settlement sanction, the company being declared as a relief undertaking under the Maharashtra Relief Undertakings (Special Provisions) Act, 1958, absence of proper authority for filing the application, and the debt not being a financial debt under Section 5(8) of the IBC.
Assets Reconstruction Company (India) Limited, as the assignee of South Indian Bank Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bilcare Limited. The Corporate Debtor, Bilcare Limited, was incorporated on July 1, 1987. The Financial Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 235,29,34,240 as of December 15, 2019. The debt arose from a Standby Letter of Credit (SBLC) facility sanctioned by South Indian Bank to Bilcare Limited in October 2013 for USD 21,700,000. The SBLC facility was valid for 5 years with a bullet repayment at the end of the term. The Assignor Bank and the Corporate Debtor executed a Credit Facility Agreement dated
…South Indian Bank sanctioned a Standby Letter…
The Assignor Bank and…