The case involves an application filed by Central Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Central Departmental Stores Private Limited, the corporate guarantor for Syntex Trading and Agency Private Limited (Principal Borrower). The application was challenged by Central Departmental Stores Private Limited primarily on the ground that the default occurred during the period specified under Section 10A of the IBC, which prohibits initiation of CIRP for defaults occurring between March 25, 2020, and March 24, 2021. The financial creditor claimed default as of March 31, 2022, following a restructuring agreement (OTR) that was not honored by the principal borrower. The
…Central Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Central Departmental Stores Private Limited (Corporate Debtor), who acted as a corporate guarantor for Syntex Trading and Agency Private Limited (Principal Borrower). The alleged default amount was Rs.420,13,90,040.33/- as of May 29, 2022. The Principal Borrower had committed an initial default on September 30, 2020, and its loan account was classified as NPA on December 29, 2020. The Principal Borrower requested a One-Time Restructuring (OTR) under the RBI Covid Circular, which was approved, and a Restructuring Agreement was executed on May 21, 2021. The Corporate Debtor
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Section 10A of the IBC comes into effect,…
The Principal Borrower…
The case involves an application filed by Central Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Central Departmental Stores Private Limited, the corporate guarantor for Syntex Trading and Agency Private Limited (Principal Borrower). The application was challenged by Central Departmental Stores Private Limited primarily on the ground that the default occurred during the period specified under Section 10A of the IBC, which prohibits initiation of CIRP for defaults occurring between March 25, 2020, and March 24, 2021. The financial creditor claimed default as of March 31, 2022, following a restructuring agreement (OTR) that was not honored by the principal borrower. The
…Central Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Central Departmental Stores Private Limited (Corporate Debtor), who acted as a corporate guarantor for Syntex Trading and Agency Private Limited (Principal Borrower). The alleged default amount was Rs.420,13,90,040.33/- as of May 29, 2022. The Principal Borrower had committed an initial default on September 30, 2020, and its loan account was classified as NPA on December 29, 2020. The Principal Borrower requested a One-Time Restructuring (OTR) under the RBI Covid Circular, which was approved, and a Restructuring Agreement was executed on May 21, 2021. The Corporate Debtor
…Section 10A of the IBC comes into effect,…
The Principal Borrower…