UCO Bank, a financial creditor, filed a petition under Section 7(1) of the Insolvency and Bankruptcy Code, 2016, against Limtex (India) Limited, the corporate debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The corporate debtor had availed credit facilities from the financial creditor with an aggregate limit of ₹15,00,00,000 under a consortium arrangement with State Bank of India. The corporate debtor failed to operate the accounts in terms of the agreement and started defaulting in servicing interest and principal amounts, leading to the account being declared a Non-Performing Asset (NPA) on 30th September 2016. The financial creditor issued a demand notice on 6th March 2017, demanding payment of the outstanding amount.
UCO Bank, the financial creditor, extended credit facilities to Limtex (India) Limited, the corporate debtor, with a total limit of ₹15,00,00,000 under a consortium arrangement involving State Bank of India (SBI). These facilities included Cash Credit, Export Packing Credit, FBP/FBN A/c, and Letter of Credit. The credit facilities were sanctioned based on terms recorded in a Sanction Advice dated 20 November 2014, which the Corporate Debtor accepted. The Corporate Debtor failed to operate the accounts as per the agreement and defaulted on interest and principal payments. Consequently, the account was classified as a Non-Performing Asset (NPA) on 30 September 2016. Despite repeated requests, the Corporate Debtor failed to liquidate the outstanding dues. UCO Bank issued
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Credit facilities were sanctioned to the…
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UCO Bank, a financial creditor, filed a petition under Section 7(1) of the Insolvency and Bankruptcy Code, 2016, against Limtex (India) Limited, the corporate debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The corporate debtor had availed credit facilities from the financial creditor with an aggregate limit of ₹15,00,00,000 under a consortium arrangement with State Bank of India. The corporate debtor failed to operate the accounts in terms of the agreement and started defaulting in servicing interest and principal amounts, leading to the account being declared a Non-Performing Asset (NPA) on 30th September 2016. The financial creditor issued a demand notice on 6th March 2017, demanding payment of the outstanding amount.
UCO Bank, the financial creditor, extended credit facilities to Limtex (India) Limited, the corporate debtor, with a total limit of ₹15,00,00,000 under a consortium arrangement involving State Bank of India (SBI). These facilities included Cash Credit, Export Packing Credit, FBP/FBN A/c, and Letter of Credit. The credit facilities were sanctioned based on terms recorded in a Sanction Advice dated 20 November 2014, which the Corporate Debtor accepted. The Corporate Debtor failed to operate the accounts as per the agreement and defaulted on interest and principal payments. Consequently, the account was classified as a Non-Performing Asset (NPA) on 30 September 2016. Despite repeated requests, the Corporate Debtor failed to liquidate the outstanding dues. UCO Bank issued
…Credit facilities were sanctioned to the…
The Corporate…