Universal Petro-Chemicals Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Joy Homecreation Limited, claiming an unresolved financial debt of Rs. 77,58,750/-. The petitioner states that they advanced a short-term accommodation loan to the corporate debtor, which the corporate debtor failed to repay. The corporate debtor opposed the petition, arguing that there was no financial debt and that the cheques issued were for security purposes only.
Universal Petro-Chemicals Limited (the Petitioner) claimed to have advanced a short-term accommodation loan of Rs. 50,00,000/- to Joy Homecreation Limited (the Corporate Debtor) on 18.07.2014, with an interest rate of 12% per annum, payable after 90 days. In February 2015, the Corporate Debtor requested an additional Rs. 25,00,000/- under the same terms. The interest rate was increased to 15% p.a. from January 2017. The Corporate Debtor paid interest until March 2018 but then defaulted. On 4th November 2019, the debt became due. The Corporate Debtor issued two cheques, dated 1st October 2019 and 16th August 2019, for Rs. 75,00,000/- and Rs. 2,58,750/-, respectively, which were dishonored due to "Payment Stopped by Attachment Court Order". The Petitioner
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Petitioner adva…
Corporate Debtor…
Universal Petro-Chemicals Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Joy Homecreation Limited, claiming an unresolved financial debt of Rs. 77,58,750/-. The petitioner states that they advanced a short-term accommodation loan to the corporate debtor, which the corporate debtor failed to repay. The corporate debtor opposed the petition, arguing that there was no financial debt and that the cheques issued were for security purposes only.
Universal Petro-Chemicals Limited (the Petitioner) claimed to have advanced a short-term accommodation loan of Rs. 50,00,000/- to Joy Homecreation Limited (the Corporate Debtor) on 18.07.2014, with an interest rate of 12% per annum, payable after 90 days. In February 2015, the Corporate Debtor requested an additional Rs. 25,00,000/- under the same terms. The interest rate was increased to 15% p.a. from January 2017. The Corporate Debtor paid interest until March 2018 but then defaulted. On 4th November 2019, the debt became due. The Corporate Debtor issued two cheques, dated 1st October 2019 and 16th August 2019, for Rs. 75,00,000/- and Rs. 2,58,750/-, respectively, which were dishonored due to "Payment Stopped by Attachment Court Order". The Petitioner
…Petitioner adva…
Corporate Debtor…