The Interlocutory Application (I.A.) 442 of 2024 was filed by Mr. Naren Sheth, the Resolution Professional (RP) of Shreem Corporation Limited, seeking directions against Shreem Corporation Limited. The application was filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking permission to distribute an excess amount of Rs. 100.61 Crores lying in the current account of the Corporate Debtor to State Bank of India (SBI), the sole Committee of Creditors (CoC) member. The background involves a failed property sale transaction with Ruby Mills, leading to funds being refunded to the Corporate Debtor.
In 2011, The Ruby Mills approached Shreem Corporation Limited (Corporate Debtor) with a proposal to sell an area of 1,08,308 sq. ft. Ruby Mills informed the Corporate Debtor that the area yielded rent of Rs.2.25 Crores. Ruby Mills persuaded the Corporate Debtor to seek a Lease rental discounting loan from SBI, stating they had already availed a commercial loan of Rs. 110 Crores from Allahabad Bank. An MoU was executed, and SBI sanctioned and disbursed Rs.155 Crores to the Corporate Debtor on 08.02.2012. Ruby Mills failed to fulfill their obligations under the LoI, not executing a definitive agreement or assigning leave and license agreements. Ruby Mills refunded Rs.54 Crores on 26.03.2012 and 31.05.2012, leaving Rs.101 Crores unpaid. The RP filed a Company Petition
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The Ruby Mills approached Shreem Corporation…
SBI sanctioned and…
The Interlocutory Application (I.A.) 442 of 2024 was filed by Mr. Naren Sheth, the Resolution Professional (RP) of Shreem Corporation Limited, seeking directions against Shreem Corporation Limited. The application was filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking permission to distribute an excess amount of Rs. 100.61 Crores lying in the current account of the Corporate Debtor to State Bank of India (SBI), the sole Committee of Creditors (CoC) member. The background involves a failed property sale transaction with Ruby Mills, leading to funds being refunded to the Corporate Debtor.
In 2011, The Ruby Mills approached Shreem Corporation Limited (Corporate Debtor) with a proposal to sell an area of 1,08,308 sq. ft. Ruby Mills informed the Corporate Debtor that the area yielded rent of Rs.2.25 Crores. Ruby Mills persuaded the Corporate Debtor to seek a Lease rental discounting loan from SBI, stating they had already availed a commercial loan of Rs. 110 Crores from Allahabad Bank. An MoU was executed, and SBI sanctioned and disbursed Rs.155 Crores to the Corporate Debtor on 08.02.2012. Ruby Mills failed to fulfill their obligations under the LoI, not executing a definitive agreement or assigning leave and license agreements. Ruby Mills refunded Rs.54 Crores on 26.03.2012 and 31.05.2012, leaving Rs.101 Crores unpaid. The RP filed a Company Petition
…The Ruby Mills approached Shreem Corporation…
SBI sanctioned and…