Indian Overseas Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Keshar Multiyarn Mill Limited, claiming a default on a financial debt. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, which were secured by hypothecation/mortgage of land, factory, and other assets. The Corporate Debtor's account became irregular and was classified as a Non-Performing Asset (NPA). The Financial Creditor initiated recovery proceedings before the Debt Recovery Tribunal (DRT) and also issued a demand notice under the SARFAESI Act. The Corporate Debtor disputed the claims and argued that the petition was barred by limitation.
Indian Overseas Bank (IOB) extended credit facilities to Keshar Multiyarn Mill Limited. These facilities included cash credit and term loans, secured by hypothecation and mortgage of assets. The Corporate Debtor's account was classified as NPA on 21.12.2012, later corrected to 16.12.2013. IOB initiated recovery proceedings before the Debt Recovery Tribunal (DRT) and issued a demand notice under SARFAESI Act. The date of default was initially mentioned as 21.12.2012 in Form-1, later corrected to 16.12.2013. The loan was to be repaid in 32 quarterly installments from 01.04.2009. The Financial Creditor claimed a default of Rs. 68,29,59,978.82/-. The Corporate Debtor argued that the petition was time-barred, relying on the NPA declaration date and the DRT proceedings. The
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Indian Overseas Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Keshar Multiyarn Mill Limited, claiming a default on a financial debt. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, which were secured by hypothecation/mortgage of land, factory, and other assets. The Corporate Debtor's account became irregular and was classified as a Non-Performing Asset (NPA). The Financial Creditor initiated recovery proceedings before the Debt Recovery Tribunal (DRT) and also issued a demand notice under the SARFAESI Act. The Corporate Debtor disputed the claims and argued that the petition was barred by limitation.
Indian Overseas Bank (IOB) extended credit facilities to Keshar Multiyarn Mill Limited. These facilities included cash credit and term loans, secured by hypothecation and mortgage of assets. The Corporate Debtor's account was classified as NPA on 21.12.2012, later corrected to 16.12.2013. IOB initiated recovery proceedings before the Debt Recovery Tribunal (DRT) and issued a demand notice under SARFAESI Act. The date of default was initially mentioned as 21.12.2012 in Form-1, later corrected to 16.12.2013. The loan was to be repaid in 32 quarterly installments from 01.04.2009. The Financial Creditor claimed a default of Rs. 68,29,59,978.82/-. The Corporate Debtor argued that the petition was time-barred, relying on the NPA declaration date and the DRT proceedings. The
…Date of the sanction…
The loan was to be…