The case pertains to an application filed by Small Industries Development Bank of India (SIDBI), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Kriti Prakashan Private Limited, the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for financial assistance, which was approved, and a loan of ₹1,00,00,000/- was disbursed. The Corporate Debtor failed to pay the first annual installment, leading to the account being declared NPA. Despite attempts at restructuring, the conditions for implementation were not met.
Kriti Prakashan Private Limited (Corporate Debtor) approached Small Industries Development Bank of India (SIDBI) (Financial Creditor) on 27.11.2015 for financial assistance. SIDBI approved the request on 24.10.2016 and disbursed a loan of ₹1,00,00,000 on 22.11.2016. The loan repayment was structured with a moratorium period, followed by four annual installments of ₹25,00,000 each, plus monthly interest payments. The Corporate Debtor defaulted on the first annual installment, leading SIDBI to classify the account as NPA in February 2019. Restructuring talks failed, and SIDBI issued a letter on 02.09.2019, which was replied to by the Corporate Debtor on 16.09.2019, admitting the inability to pay the July 2019 interest installment due to financial constraints. The
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The case pertains to an application filed by Small Industries Development Bank of India (SIDBI), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Kriti Prakashan Private Limited, the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for financial assistance, which was approved, and a loan of ₹1,00,00,000/- was disbursed. The Corporate Debtor failed to pay the first annual installment, leading to the account being declared NPA. Despite attempts at restructuring, the conditions for implementation were not met.
Kriti Prakashan Private Limited (Corporate Debtor) approached Small Industries Development Bank of India (SIDBI) (Financial Creditor) on 27.11.2015 for financial assistance. SIDBI approved the request on 24.10.2016 and disbursed a loan of ₹1,00,00,000 on 22.11.2016. The loan repayment was structured with a moratorium period, followed by four annual installments of ₹25,00,000 each, plus monthly interest payments. The Corporate Debtor defaulted on the first annual installment, leading SIDBI to classify the account as NPA in February 2019. Restructuring talks failed, and SIDBI issued a letter on 02.09.2019, which was replied to by the Corporate Debtor on 16.09.2019, admitting the inability to pay the July 2019 interest installment due to financial constraints. The
…Corporate Debtor…
Financial Creditor…