The Interlocutory Application (I.A. No. 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 transaction with Ruby Mills, where SBI had sanctioned a loan of Rs. 155 Crores to Shreem Corporation Limited based on representations that Ruby Mills would sell property to them. Ruby Mills failed to fulfill their obligations, leading to the recovery
…In 2011, The Ruby Mills approached Shreem Corporation Limited (Corporate Debtor) with a proposal to sell property. 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. SBI sanctioned and disbursed Rs. 155 Crores to the Corporate Debtor on 08.02.2012. Ruby Mills failed to fulfill their obligations, leading to a partial refund of Rs. 54 Crores, leaving Rs. 101 Crores unpaid. The RP filed a Company Petition against Ruby Mills under Section 7 of the IBC for Rs. 101 Crores. Ruby Mills was directed to deposit the amount. Ruby Mills sought to settle for Rs. 78.5 Crores, with Rs. 22.5 Crores lying in a 'no lien' account with SBI. The Tribunal
…Sign in to view the parties.
The Ruby Mills…
SBI sanctioned and…
The Interlocutory Application (I.A. No. 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 transaction with Ruby Mills, where SBI had sanctioned a loan of Rs. 155 Crores to Shreem Corporation Limited based on representations that Ruby Mills would sell property to them. Ruby Mills failed to fulfill their obligations, leading to the recovery
…In 2011, The Ruby Mills approached Shreem Corporation Limited (Corporate Debtor) with a proposal to sell property. 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. SBI sanctioned and disbursed Rs. 155 Crores to the Corporate Debtor on 08.02.2012. Ruby Mills failed to fulfill their obligations, leading to a partial refund of Rs. 54 Crores, leaving Rs. 101 Crores unpaid. The RP filed a Company Petition against Ruby Mills under Section 7 of the IBC for Rs. 101 Crores. Ruby Mills was directed to deposit the amount. Ruby Mills sought to settle for Rs. 78.5 Crores, with Rs. 22.5 Crores lying in a 'no lien' account with SBI. The Tribunal
…The Ruby Mills…
SBI sanctioned and…