Bank of Baroda, previously known as Dena Bank, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hind Agro Industries Ltd., seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's failure to repay a financial debt amounting to Rs. 189,18,32,289, later revised to Rs. 131,35,68,143. The corporate debtor disputed the claim, alleging that the attempt to initiate IRP proceedings was malicious and that the applicant had concealed material facts about pre-existing litigation. The corporate debtor also argued that the amount of financial debt was imaginary and that the OTS was still binding.
On 19.01.1998, Bank of Baroda (formerly Dena Bank) advanced Rs. 10.02 lacs to Hind Agro Industries Ltd. The Corporate Debtor availed credit facilities from Dena Bank, Punjab National Bank (PNB), and Indian Bank under a multi-banking arrangement, later converted into a consortium agreement. The Corporate Debtor executed a Common Working Capital Consortium Agreement and a Joint Deed of Hypothecation. A mortgage was created by depositing title deeds of a group company, M/s Al Mashriq Exports Pvt. Ltd. on 30.04.2005. A new Working Capital Consortium Agreement and a Joint Deed of Hypothecation were executed on 15th October, 2007. The total limit was enhanced to Rs. 110.50 crores. The Board of Corporate Debtor passed a resolution for enhancing the limits of the credit
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Bank of Baroda advanced…
Corporate Debtor…
Bank of Baroda, previously known as Dena Bank, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hind Agro Industries Ltd., seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's failure to repay a financial debt amounting to Rs. 189,18,32,289, later revised to Rs. 131,35,68,143. The corporate debtor disputed the claim, alleging that the attempt to initiate IRP proceedings was malicious and that the applicant had concealed material facts about pre-existing litigation. The corporate debtor also argued that the amount of financial debt was imaginary and that the OTS was still binding.
On 19.01.1998, Bank of Baroda (formerly Dena Bank) advanced Rs. 10.02 lacs to Hind Agro Industries Ltd. The Corporate Debtor availed credit facilities from Dena Bank, Punjab National Bank (PNB), and Indian Bank under a multi-banking arrangement, later converted into a consortium agreement. The Corporate Debtor executed a Common Working Capital Consortium Agreement and a Joint Deed of Hypothecation. A mortgage was created by depositing title deeds of a group company, M/s Al Mashriq Exports Pvt. Ltd. on 30.04.2005. A new Working Capital Consortium Agreement and a Joint Deed of Hypothecation were executed on 15th October, 2007. The total limit was enhanced to Rs. 110.50 crores. The Board of Corporate Debtor passed a resolution for enhancing the limits of the credit
…Bank of Baroda advanced…
Corporate Debtor…