The case involves a petition filed by Union Bank of India Limited, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Kharewali Steel Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had approached the Financial Creditor for a Working Capital Loan and Overdraft Facility. The Corporate Debtor defaulted in payment of interest, leading to its accounts being declared as NPA. The Financial Creditor issued demand notices under Section 13(2) of the SARFAESI Act. The Corporate Debtor contended that the Financial Creditor charged excess interest and failed to renew existing credit facilities.
Union Bank of India Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Kharewali Steel Private Limited (Corporate Debtor) for initiating CIRP. The Corporate Debtor had availed a Working Capital Loan of Rs.25,00,00,000/- on 10.11.2014 and an Overdraft Facility of Rs.10,00,00,000/-. The Corporate Debtor executed a Demand Promissory Note on 27.03.2015 and entered into a Hypothecation Agreement on 27.02.2017. The Corporate Debtor defaulted in payment of interest for three consecutive months in June, July, and August 2018. The accounts were declared NPA on 31.08.2018. The total amount due was Rs. 36,18,03,995.89/- as of 31.08.2018. The Financial Creditor sent a Demand Notice u/s 13(2) of the SARFAESI Act on
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Corporate Debtor approached the Financial…
Financial Creditor…
The case involves a petition filed by Union Bank of India Limited, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Kharewali Steel Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had approached the Financial Creditor for a Working Capital Loan and Overdraft Facility. The Corporate Debtor defaulted in payment of interest, leading to its accounts being declared as NPA. The Financial Creditor issued demand notices under Section 13(2) of the SARFAESI Act. The Corporate Debtor contended that the Financial Creditor charged excess interest and failed to renew existing credit facilities.
Union Bank of India Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Kharewali Steel Private Limited (Corporate Debtor) for initiating CIRP. The Corporate Debtor had availed a Working Capital Loan of Rs.25,00,00,000/- on 10.11.2014 and an Overdraft Facility of Rs.10,00,00,000/-. The Corporate Debtor executed a Demand Promissory Note on 27.03.2015 and entered into a Hypothecation Agreement on 27.02.2017. The Corporate Debtor defaulted in payment of interest for three consecutive months in June, July, and August 2018. The accounts were declared NPA on 31.08.2018. The total amount due was Rs. 36,18,03,995.89/- as of 31.08.2018. The Financial Creditor sent a Demand Notice u/s 13(2) of the SARFAESI Act on
…Corporate Debtor approached the Financial…
Financial Creditor…