Central Bank of India filed a company petition against Mr. Kotha Venkata Rao, the personal guarantor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The financial creditor had sanctioned a term loan of Rs. 35 Crores to the Corporate Debtor, who failed to repay the loan, leading to the account being declared as NPA. The Corporate Debtor acknowledged the loan amount, and the petitioner issued a demand notice under the SARFAESI Act. The petitioner took possession of the mortgaged securities and issued a sale notice, but the auction was stayed by the DRT. The Corporate Debtor submitted OTS proposals, which were not fulfilled, leading to the current application for CIRP.
Central Bank of India (Financial Creditor) sanctioned a term loan of Rs. 35 Crores to a Corporate Debtor on 2013-04-23. The Corporate Debtor executed a Term Loan Agreement and a letter of Hypothecation on 2013-05-06, creating an equitable mortgage. Mr. Kotha Venkata Rao (Respondent) stood as a guarantor for the loan. The Corporate Debtor defaulted on the loan, and the account was declared NPA on 2015-07-29. The Corporate Debtor acknowledged the debt on 2017-02-21. The Financial Creditor issued a demand notice under the SARFAESI Act on 2018-01-01. The Corporate Debtor failed to repay. The Financial Creditor took possession of mortgaged securities and issued a sale notice on 2021-02-10, with an auction date of 2021-03-15. The DRT Visakhapatnam stayed the auction. The
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Central Bank of India filed a company petition against Mr. Kotha Venkata Rao, the personal guarantor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The financial creditor had sanctioned a term loan of Rs. 35 Crores to the Corporate Debtor, who failed to repay the loan, leading to the account being declared as NPA. The Corporate Debtor acknowledged the loan amount, and the petitioner issued a demand notice under the SARFAESI Act. The petitioner took possession of the mortgaged securities and issued a sale notice, but the auction was stayed by the DRT. The Corporate Debtor submitted OTS proposals, which were not fulfilled, leading to the current application for CIRP.
Central Bank of India (Financial Creditor) sanctioned a term loan of Rs. 35 Crores to a Corporate Debtor on 2013-04-23. The Corporate Debtor executed a Term Loan Agreement and a letter of Hypothecation on 2013-05-06, creating an equitable mortgage. Mr. Kotha Venkata Rao (Respondent) stood as a guarantor for the loan. The Corporate Debtor defaulted on the loan, and the account was declared NPA on 2015-07-29. The Corporate Debtor acknowledged the debt on 2017-02-21. The Financial Creditor issued a demand notice under the SARFAESI Act on 2018-01-01. The Corporate Debtor failed to repay. The Financial Creditor took possession of mortgaged securities and issued a sale notice on 2021-02-10, with an auction date of 2021-03-15. The DRT Visakhapatnam stayed the auction. The
…The Petitioner/Financial Creditor sanctioned…
The Corporate Debtor…