The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Ms. Sandhya Sethi & Anr. (Applicants/Financial Creditors) against M/s. Inteco Special Melting Technologies India Pvt. Ltd. (Respondent/Corporate Debtor). The applicants sought to initiate Corporate Insolvency Resolution Process (CIRP) against the respondent, alleging default on loan repayments. The respondent company raised objections, claiming it was solvent and the petition was a mala fide attempt to extort money. The applicants argued that the loans advanced were financial debts and the corporate debtor had acknowledged the debt in its books of accounts.
Ms. Sandhya Sethi and another applicant, both shareholders of Inteco Special Melting Technologies India Pvt. Ltd., filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the company. Applicant 1, also a former director, had arranged a loan of Rs. 15,00,000 to the company, while Applicant 2, also a former director, had provided loans that were partially repaid, leaving an outstanding balance of Rs. 14,36,840. The applicants claimed that the company defaulted on these loans, which constituted financial debt. The company, however, contested the petition, arguing that it was solvent, the debt was not a financial debt as defined under the IBC, and the application was a mala
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The Respondent Company…
Applicant 1 arranged Rs. 15,00,000 from a…
The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Ms. Sandhya Sethi & Anr. (Applicants/Financial Creditors) against M/s. Inteco Special Melting Technologies India Pvt. Ltd. (Respondent/Corporate Debtor). The applicants sought to initiate Corporate Insolvency Resolution Process (CIRP) against the respondent, alleging default on loan repayments. The respondent company raised objections, claiming it was solvent and the petition was a mala fide attempt to extort money. The applicants argued that the loans advanced were financial debts and the corporate debtor had acknowledged the debt in its books of accounts.
Ms. Sandhya Sethi and another applicant, both shareholders of Inteco Special Melting Technologies India Pvt. Ltd., filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the company. Applicant 1, also a former director, had arranged a loan of Rs. 15,00,000 to the company, while Applicant 2, also a former director, had provided loans that were partially repaid, leaving an outstanding balance of Rs. 14,36,840. The applicants claimed that the company defaulted on these loans, which constituted financial debt. The company, however, contested the petition, arguing that it was solvent, the debt was not a financial debt as defined under the IBC, and the application was a mala
…The Respondent Company…
Applicant 1 arranged Rs. 15,00,000 from a…