The case involves two company petitions, CP(IB) No. 91/KB/2022 and CP(IB) No. 200/KB/2022, filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by CFM Asset Reconstruction Pvt. Ltd. (substituted for Indian Bank) against Motijug Agencies Limited and Machine Works (International) Limited, respectively. These petitions relate to the corporate guarantees provided by Motijug and Machine Works for the principal borrower, Ural India Limited (UIL), which is undergoing liquidation. The financial creditor seeks to initiate Corporate Insolvency Resolution Process (CIRP) against the corporate guarantors due to the default in repayment of loans by UIL.
On 15.09.2010, Allahabad Bank sanctioned a term loan to Ural India Limited (UIL) for Rs. 27 crores. Enhanced credit limits were granted to UIL on 12.10.2010, secured by personal and corporate guarantees from J.K. Saraff, Anirudh Kanoi, Machine Works (International) Limited, and Motijug Agencies Limited. On 18.05.2012, UIL requested restructuring of the loan account, and the financial creditor sanctioned an aggregate limit of Rs. 28.31 Crores. Machine Works and Motijug furnished personal guarantees for the repayment of loans to UIL. The loan account of UIL was classified as NPA on 12.07.2014. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued on 31.07.2014 to the borrower and guarantors. UIL's CIRP commenced on 15.10.2019, and liquidation proceedings
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Allahabad Bank…
Enhanced credit limits granted to UIL along…
The case involves two company petitions, CP(IB) No. 91/KB/2022 and CP(IB) No. 200/KB/2022, filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by CFM Asset Reconstruction Pvt. Ltd. (substituted for Indian Bank) against Motijug Agencies Limited and Machine Works (International) Limited, respectively. These petitions relate to the corporate guarantees provided by Motijug and Machine Works for the principal borrower, Ural India Limited (UIL), which is undergoing liquidation. The financial creditor seeks to initiate Corporate Insolvency Resolution Process (CIRP) against the corporate guarantors due to the default in repayment of loans by UIL.
On 15.09.2010, Allahabad Bank sanctioned a term loan to Ural India Limited (UIL) for Rs. 27 crores. Enhanced credit limits were granted to UIL on 12.10.2010, secured by personal and corporate guarantees from J.K. Saraff, Anirudh Kanoi, Machine Works (International) Limited, and Motijug Agencies Limited. On 18.05.2012, UIL requested restructuring of the loan account, and the financial creditor sanctioned an aggregate limit of Rs. 28.31 Crores. Machine Works and Motijug furnished personal guarantees for the repayment of loans to UIL. The loan account of UIL was classified as NPA on 12.07.2014. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued on 31.07.2014 to the borrower and guarantors. UIL's CIRP commenced on 15.10.2019, and liquidation proceedings
…Allahabad Bank…
Enhanced credit limits granted to UIL along…