The case involves an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, filed by Sumangal Dealmark Pvt. Ltd. & Ors. (Financial Creditor) against Citystar Infrastructures Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claims that the Corporate Debtor defaulted on a debt of Rs. 78,73,12,958. The Corporate Debtor argues that the agreement between them is a joint development agreement and that the amount cannot be construed as 'Financial Debt'. The Corporate Debtor also claims that the Financial Creditor did not provide funds for obtaining a sanctioned plan from the Kolkata Municipal Corporation, leading to delays in the project.
Sumangal Dealmark Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Citystar Infrastructures Limited (Corporate Debtor) for initiating CIRP. The Financial Creditor and Corporate Debtor entered into an agreement on February 18, 2014, where the Financial Creditor agreed to provide financial assistance to the Corporate Debtor for a real estate project. The Financial Creditor disbursed Rs. 13,20,00,000 to the Corporate Debtor. The agreement stipulated that the Financial Creditor would receive a 50% share of the project's profits in lieu of interest. The Corporate Debtor was also party to a development agreement dated October 12, 2007, with Bengal Secretariat Co-operative Land Mortgage Bank and Housing
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Development agreement between Corporate Debtor…
Agreement where Financial Creditor agreed to…
The case involves an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, filed by Sumangal Dealmark Pvt. Ltd. & Ors. (Financial Creditor) against Citystar Infrastructures Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claims that the Corporate Debtor defaulted on a debt of Rs. 78,73,12,958. The Corporate Debtor argues that the agreement between them is a joint development agreement and that the amount cannot be construed as 'Financial Debt'. The Corporate Debtor also claims that the Financial Creditor did not provide funds for obtaining a sanctioned plan from the Kolkata Municipal Corporation, leading to delays in the project.
Sumangal Dealmark Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Citystar Infrastructures Limited (Corporate Debtor) for initiating CIRP. The Financial Creditor and Corporate Debtor entered into an agreement on February 18, 2014, where the Financial Creditor agreed to provide financial assistance to the Corporate Debtor for a real estate project. The Financial Creditor disbursed Rs. 13,20,00,000 to the Corporate Debtor. The agreement stipulated that the Financial Creditor would receive a 50% share of the project's profits in lieu of interest. The Corporate Debtor was also party to a development agreement dated October 12, 2007, with Bengal Secretariat Co-operative Land Mortgage Bank and Housing
…Development agreement between Corporate Debtor…
Agreement where Financial Creditor agreed to…