The case involves an application filed by Phoenix ARC Private Ltd, the Financial Creditor, against Kerala Chamber of Commerce and Industries, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities from South Indian Bank, which were later assigned to Phoenix ARC. The Financial Creditor claimed a total amount of Rs. 8,60,00,000/- was due. The Corporate Debtor opposed the application, raising issues of limitation and arguing that the applicant was not a financial creditor. The Corporate Debtor also argued that it is a Section 8 company and the loan was ultra vires its Memorandum of Association.
Kerala Chamber of Commerce and Industries (Corporate Debtor) availed credit facilities from South Indian Bank. On 15.09.2010, South Indian Bank sanctioned a loan of Rs. 110 Lakhs for purchasing passenger elevators and generators. On 30.12.2010, another loan of Rs. 500 Lakhs was sanctioned for constructing a residential-cum-commercial building. On 01.01.2013, another loan of Rs. 250 Lakhs was sanctioned to purchase and install AC units. The Corporate Debtor acknowledged the debt in its balance sheets until 2019. The loan accounts became NPA on 30.09.2013. Phoenix ARC Private Ltd (Financial Creditor), as assignee of South Indian Bank, filed an application under Section 7 of the IBC claiming Rs. 8,60,00,000/- was due. The Corporate Debtor argued that the application was
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South Indian Bank sanctioned a loan of Rs.…
Another loan of Rs. 500 Lakhs was…
The case involves an application filed by Phoenix ARC Private Ltd, the Financial Creditor, against Kerala Chamber of Commerce and Industries, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities from South Indian Bank, which were later assigned to Phoenix ARC. The Financial Creditor claimed a total amount of Rs. 8,60,00,000/- was due. The Corporate Debtor opposed the application, raising issues of limitation and arguing that the applicant was not a financial creditor. The Corporate Debtor also argued that it is a Section 8 company and the loan was ultra vires its Memorandum of Association.
Kerala Chamber of Commerce and Industries (Corporate Debtor) availed credit facilities from South Indian Bank. On 15.09.2010, South Indian Bank sanctioned a loan of Rs. 110 Lakhs for purchasing passenger elevators and generators. On 30.12.2010, another loan of Rs. 500 Lakhs was sanctioned for constructing a residential-cum-commercial building. On 01.01.2013, another loan of Rs. 250 Lakhs was sanctioned to purchase and install AC units. The Corporate Debtor acknowledged the debt in its balance sheets until 2019. The loan accounts became NPA on 30.09.2013. Phoenix ARC Private Ltd (Financial Creditor), as assignee of South Indian Bank, filed an application under Section 7 of the IBC claiming Rs. 8,60,00,000/- was due. The Corporate Debtor argued that the application was
…South Indian Bank sanctioned a loan of Rs.…
Another loan of Rs. 500 Lakhs was…