The case involves an application filed by Mahesh Sharma, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Onspon Services Pvt Ltd, the corporate debtor. The application stems from a default in payment related to Optionally Convertible Preference Shares (OCPS) allotted to Mahesh Sharma. The corporate debtor disputes the claim, arguing that Mahesh Sharma is a shareholder, not a financial creditor, and that no default has occurred as per the Shareholders Agreement and the Companies Act, 2013.
Mahesh Sharma invested Rs. 15,00,000 in Onspon Services Pvt Ltd on 2016-06-13 and was allotted 1486 Optionally Convertible Preference Shares (OCPS) of Rs. 1000 each and 1 equity share of Rs. 14000 on 2016-06-15. The Share Subscription Cum Shareholders Agreement stipulated that if the OCPS were not converted within two years, they would be redeemed with 6% simple interest per annum. Mahesh Sharma did not exercise the conversion option within the stipulated two years. The agreement also stated that redemption required a collective decision by all investors. After three years, on 2019-06-14, Mahesh Sharma sought redemption, which Onspon Services failed to fulfill. Mahesh Sharma sent reminder letters on 2019-07-09 and 2019-07-29 and a notice on 2019-08-01, demanding Rs.
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Mahesh Sharma invested…
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The case involves an application filed by Mahesh Sharma, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Onspon Services Pvt Ltd, the corporate debtor. The application stems from a default in payment related to Optionally Convertible Preference Shares (OCPS) allotted to Mahesh Sharma. The corporate debtor disputes the claim, arguing that Mahesh Sharma is a shareholder, not a financial creditor, and that no default has occurred as per the Shareholders Agreement and the Companies Act, 2013.
Mahesh Sharma invested Rs. 15,00,000 in Onspon Services Pvt Ltd on 2016-06-13 and was allotted 1486 Optionally Convertible Preference Shares (OCPS) of Rs. 1000 each and 1 equity share of Rs. 14000 on 2016-06-15. The Share Subscription Cum Shareholders Agreement stipulated that if the OCPS were not converted within two years, they would be redeemed with 6% simple interest per annum. Mahesh Sharma did not exercise the conversion option within the stipulated two years. The agreement also stated that redemption required a collective decision by all investors. After three years, on 2019-06-14, Mahesh Sharma sought redemption, which Onspon Services failed to fulfill. Mahesh Sharma sent reminder letters on 2019-07-09 and 2019-07-29 and a notice on 2019-08-01, demanding Rs.
…Mahesh Sharma invested…
Mahesh Sharma was…