Jammu and Kashmir Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Essel Infraprojects Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to an unresolved financial debt of Rs. 87,43,17,925.37. The debt arose from a long-term working capital facility extended to Pan India Utilities Distribution Company Ltd., secured by a corporate guarantee from Essel Infraprojects Limited and a mortgage on land. Essel Infraprojects Limited argued that its liabilities had been transferred to another entity through a scheme of demerger and amalgamation. The petitioner bank contended that the corporate guarantee remained valid despite the restructuring.
Jammu and Kashmir Bank Limited (the Petitioner) extended a long-term working capital facility of INR 200 crores to Pan India Utilities Distribution Company Ltd. This loan was secured by a corporate guarantee from Essel Infraprojects Limited (the Corporate Debtor) and a mortgage on land owned by the Corporate Debtor. Pan India Utilities Distribution Company Ltd. defaulted on the repayment of installments. The Petitioner sent demand notices to the principal borrower. The Corporate Debtor argued that its liabilities had been transferred to another company due to a Scheme of Demerger and a subsequent Scheme of Amalgamation. The Petitioner filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution
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Jammu Kashmir Bank Limited issued a sanction…
Loan agreement dated…
Jammu and Kashmir Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Essel Infraprojects Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to an unresolved financial debt of Rs. 87,43,17,925.37. The debt arose from a long-term working capital facility extended to Pan India Utilities Distribution Company Ltd., secured by a corporate guarantee from Essel Infraprojects Limited and a mortgage on land. Essel Infraprojects Limited argued that its liabilities had been transferred to another entity through a scheme of demerger and amalgamation. The petitioner bank contended that the corporate guarantee remained valid despite the restructuring.
Jammu and Kashmir Bank Limited (the Petitioner) extended a long-term working capital facility of INR 200 crores to Pan India Utilities Distribution Company Ltd. This loan was secured by a corporate guarantee from Essel Infraprojects Limited (the Corporate Debtor) and a mortgage on land owned by the Corporate Debtor. Pan India Utilities Distribution Company Ltd. defaulted on the repayment of installments. The Petitioner sent demand notices to the principal borrower. The Corporate Debtor argued that its liabilities had been transferred to another company due to a Scheme of Demerger and a subsequent Scheme of Amalgamation. The Petitioner filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution
…Jammu Kashmir Bank Limited issued a sanction…
Loan agreement dated…