The case pertains to an application filed by Punjab National Bank (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kanoria Sugar and General Manufacturing Company Limited (Corporate Debtor). An intervention application (IA No.25/ALD/2021) was filed, arguing for a stay on the proceedings based on a prior order from the Allahabad High Court related to farmers' interests. The Financial Creditor had provided credit facilities to the Corporate Debtor, which the Corporate Debtor failed to repay, leading to the account being declared NPA.
Punjab National Bank (PNB), the Financial Creditor, extended credit facilities, including term loans, overdraft facilities, and cash credit facilities, to Kanoria Sugar and General Manufacturing Company Limited, the Corporate Debtor. Two agreements were executed between PNB and Kanoria Sugar on 01.02.2016 and 29.12.2017, respectively. In pursuance of these agreements, PNB increased the financial assistance to Kanoria Sugar from ₹75.82 crore to ₹80.80 crore. A charge was created on 29.12.2017 against the mortgage of properties of the Corporate Debtor. Kanoria Sugar failed to make payments as per the agreement terms. Consequently, PNB declared Kanoria Sugar's account as Non-Performing Asset (NPA) on 30.06.2018, with the default occurring on 30.04.2018. PNB issued a
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First agreement executed between Punjab…
Second agreement executed between Punjab…
The case pertains to an application filed by Punjab National Bank (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kanoria Sugar and General Manufacturing Company Limited (Corporate Debtor). An intervention application (IA No.25/ALD/2021) was filed, arguing for a stay on the proceedings based on a prior order from the Allahabad High Court related to farmers' interests. The Financial Creditor had provided credit facilities to the Corporate Debtor, which the Corporate Debtor failed to repay, leading to the account being declared NPA.
Punjab National Bank (PNB), the Financial Creditor, extended credit facilities, including term loans, overdraft facilities, and cash credit facilities, to Kanoria Sugar and General Manufacturing Company Limited, the Corporate Debtor. Two agreements were executed between PNB and Kanoria Sugar on 01.02.2016 and 29.12.2017, respectively. In pursuance of these agreements, PNB increased the financial assistance to Kanoria Sugar from ₹75.82 crore to ₹80.80 crore. A charge was created on 29.12.2017 against the mortgage of properties of the Corporate Debtor. Kanoria Sugar failed to make payments as per the agreement terms. Consequently, PNB declared Kanoria Sugar's account as Non-Performing Asset (NPA) on 30.06.2018, with the default occurring on 30.04.2018. PNB issued a
…First agreement executed between Punjab…
Second agreement executed between Punjab…