The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 by Syndicate Bank (later merged with Canara Bank) against M/s Kranthi Edifice Private Limited, the Corporate Debtor, due to defaults in loan repayment and interest payments. The Corporate Debtor contested the application, arguing that the insolvency proceedings were fraudulent and malicious, stemming from wrongful invocation of bank guarantees. The Financial Creditor claimed that the Corporate Debtor availed fund-based and non-fund-based credit facilities, defaulted on payments, and acknowledged the debt. The Corporate Debtor argued that the invocation of bank guarantees was illegal and that the Financial Creditor acted with mala fide intention.
Syndicate Bank, later merged with Canara Bank, extended fund-based and non-fund-based credit facilities to Kranthi Edifice Private Limited. The Corporate Debtor defaulted on repayment, leading the Financial Creditor to file an application under Section 7 of the IBC. The Corporate Debtor argued that the insolvency proceedings were fraudulent due to wrongful invocation of bank guarantees worth Rs. 8.40 crores by beneficiaries, which the Financial Creditor honored. The Corporate Debtor claimed the Financial Creditor unilaterally converted non-fund-based liability into fund-based liability, declaring the account NPA. The Corporate Debtor also filed writ petitions in the High Court challenging the Financial Creditor's actions. The Financial Creditor contended that the
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Kranthi Edifice Private…
Financial Creditor…
The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 by Syndicate Bank (later merged with Canara Bank) against M/s Kranthi Edifice Private Limited, the Corporate Debtor, due to defaults in loan repayment and interest payments. The Corporate Debtor contested the application, arguing that the insolvency proceedings were fraudulent and malicious, stemming from wrongful invocation of bank guarantees. The Financial Creditor claimed that the Corporate Debtor availed fund-based and non-fund-based credit facilities, defaulted on payments, and acknowledged the debt. The Corporate Debtor argued that the invocation of bank guarantees was illegal and that the Financial Creditor acted with mala fide intention.
Syndicate Bank, later merged with Canara Bank, extended fund-based and non-fund-based credit facilities to Kranthi Edifice Private Limited. The Corporate Debtor defaulted on repayment, leading the Financial Creditor to file an application under Section 7 of the IBC. The Corporate Debtor argued that the insolvency proceedings were fraudulent due to wrongful invocation of bank guarantees worth Rs. 8.40 crores by beneficiaries, which the Financial Creditor honored. The Corporate Debtor claimed the Financial Creditor unilaterally converted non-fund-based liability into fund-based liability, declaring the account NPA. The Corporate Debtor also filed writ petitions in the High Court challenging the Financial Creditor's actions. The Financial Creditor contended that the
…Kranthi Edifice Private…
Financial Creditor…