Axis Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kafila Hospitality and Travels Private Limited. The application stemmed from an alleged default related to a loan facility of Rs. 40,00,00,000 sanctioned to the Corporate Debtor to meet working capital requirements and pay off existing debts. The funds were intended for a takeover of the Corporate Debtor's existing cash credit facility with Union Bank of India. However, the takeover failed due to non-compliance with RBI norms, and the funds were remitted back to Axis Bank. Axis Bank then sought to debit
…Axis Bank Limited ('Applicant') sought to initiate Corporate Insolvency Resolution Process (CIRP) against Kafila Hospitality and Travels Private Limited ('Corporate Debtor') under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Applicant had sanctioned a loan facility of Rs. 40,00,00,000 to the Corporate Debtor for working capital and to pay off existing debts. The loan was intended to facilitate the takeover of the Corporate Debtor's cash credit facility with Union Bank of India ('Existing Lender'). After the loan was sanctioned, a Working Capital Loan Agreement was executed between the Applicant and the Corporate Debtor. The Applicant disbursed Rs. 37,46,00,000 to settle the Corporate Debtor's account with the Existing Lender. However, Union Bank of India
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The Insolven…
Axis Bank sanctioned a loan facility of Rs.…
Axis Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kafila Hospitality and Travels Private Limited. The application stemmed from an alleged default related to a loan facility of Rs. 40,00,00,000 sanctioned to the Corporate Debtor to meet working capital requirements and pay off existing debts. The funds were intended for a takeover of the Corporate Debtor's existing cash credit facility with Union Bank of India. However, the takeover failed due to non-compliance with RBI norms, and the funds were remitted back to Axis Bank. Axis Bank then sought to debit
…Axis Bank Limited ('Applicant') sought to initiate Corporate Insolvency Resolution Process (CIRP) against Kafila Hospitality and Travels Private Limited ('Corporate Debtor') under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Applicant had sanctioned a loan facility of Rs. 40,00,00,000 to the Corporate Debtor for working capital and to pay off existing debts. The loan was intended to facilitate the takeover of the Corporate Debtor's cash credit facility with Union Bank of India ('Existing Lender'). After the loan was sanctioned, a Working Capital Loan Agreement was executed between the Applicant and the Corporate Debtor. The Applicant disbursed Rs. 37,46,00,000 to settle the Corporate Debtor's account with the Existing Lender. However, Union Bank of India
…The Insolven…
Axis Bank sanctioned a loan facility of Rs.…