Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rite Developers Private Limited. The financial creditor claimed default on a loan agreement where the corporate debtor failed to meet its monthly interest obligations. The corporate debtor argued against the petition, citing multiple dates of default and claiming the petition was an attempt to circumvent Section 10A of the Code. The financial creditor argued that the default exceeded the minimum threshold and the application was within the limitation period.
Piramal Capital & Housing Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rite Developers Private Limited (Corporate Debtor). The Financial Creditor had sanctioned a Term Loan of Rs.60 Crores to the Corporate Debtor, with Rite Builtec Private Limited as Co-borrower. The loan agreement was executed on 06.06.2018, and a total sum of INR 52,25,00,000 was disbursed in tranches. The Corporate Debtor defaulted on its monthly interest obligations starting in June 2018. The Financial Creditor issued a recall notice on 28.08.2020 and a notice under Section 13(2) of the SARFAESI Act on 24.09.2020. The Corporate Debtor requested further
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Financial Creditor…
Loan Agreement executed…
Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rite Developers Private Limited. The financial creditor claimed default on a loan agreement where the corporate debtor failed to meet its monthly interest obligations. The corporate debtor argued against the petition, citing multiple dates of default and claiming the petition was an attempt to circumvent Section 10A of the Code. The financial creditor argued that the default exceeded the minimum threshold and the application was within the limitation period.
Piramal Capital & Housing Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rite Developers Private Limited (Corporate Debtor). The Financial Creditor had sanctioned a Term Loan of Rs.60 Crores to the Corporate Debtor, with Rite Builtec Private Limited as Co-borrower. The loan agreement was executed on 06.06.2018, and a total sum of INR 52,25,00,000 was disbursed in tranches. The Corporate Debtor defaulted on its monthly interest obligations starting in June 2018. The Financial Creditor issued a recall notice on 28.08.2020 and a notice under Section 13(2) of the SARFAESI Act on 24.09.2020. The Corporate Debtor requested further
…Financial Creditor…
Loan Agreement executed…