The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, by a Corporate Applicant seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Mithra Yarns Private Limited, the Corporate Debtor (CD). The CD was incorporated on 22.05.2017 and is registered as a Small Enterprise. It entered into a lease agreement on 31.08.2017 with M/s. Sai Damodhar Spinners. The CD established a spinning unit on the leased land and commenced manufacturing cotton yarn. To fund machinery, the CD approached Union Bank of India (formerly Andhra Bank) for a term loan and working capital loan, which were sanctioned on 07.04.2018. The CD commenced commercial production in January 2020, but operations were affected by
…M/s. Mithra Yarns Private Limited (Corporate Debtor) was incorporated on 22.05.2017 and registered as a Small Enterprise. On 31.08.2017, it entered into a lease agreement with M/s. Sai Damodhar Spinners. The Corporate Debtor established a spinning unit on the leased land and commenced manufacturing cotton yarn. To fund machinery, it approached Union Bank of India (formerly Andhra Bank) for a term loan and working capital loan, which were sanctioned on 07.04.2018. Commercial production began in January 2020, but COVID-19 and cotton price fluctuations led to financial losses. The Corporate Debtor defaulted on EMI payments, becoming an NPA on 28.11.2022. Union Bank of India issued a demand notice on 03.12.2022 under the SARFAESI Act and another notice on 27.02.2023 to
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M/s. Mithra Yarns…
CD entered into a lease…
The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, by a Corporate Applicant seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Mithra Yarns Private Limited, the Corporate Debtor (CD). The CD was incorporated on 22.05.2017 and is registered as a Small Enterprise. It entered into a lease agreement on 31.08.2017 with M/s. Sai Damodhar Spinners. The CD established a spinning unit on the leased land and commenced manufacturing cotton yarn. To fund machinery, the CD approached Union Bank of India (formerly Andhra Bank) for a term loan and working capital loan, which were sanctioned on 07.04.2018. The CD commenced commercial production in January 2020, but operations were affected by
…M/s. Mithra Yarns Private Limited (Corporate Debtor) was incorporated on 22.05.2017 and registered as a Small Enterprise. On 31.08.2017, it entered into a lease agreement with M/s. Sai Damodhar Spinners. The Corporate Debtor established a spinning unit on the leased land and commenced manufacturing cotton yarn. To fund machinery, it approached Union Bank of India (formerly Andhra Bank) for a term loan and working capital loan, which were sanctioned on 07.04.2018. Commercial production began in January 2020, but COVID-19 and cotton price fluctuations led to financial losses. The Corporate Debtor defaulted on EMI payments, becoming an NPA on 28.11.2022. Union Bank of India issued a demand notice on 03.12.2022 under the SARFAESI Act and another notice on 27.02.2023 to
…M/s. Mithra Yarns…
CD entered into a lease…