Kerala Financial Corporation filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sree Sankara Community for Ayurveda Consciousness Limited. The Financial Creditor, a state financial institution established in 1953, sought to recover a debt of Rs. 25,31,99,615/- as of 04.11.2022. The Corporate Debtor had defaulted on loan repayments, leading to its account being classified as NPA on 02.09.2015. Despite multiple opportunities for settlement, including a compromise settlement application and OTS proposals, the debt remained unpaid. The Financial Creditor then initiated proceedings under the IBC.
Kerala Financial Corporation (KFC), a state financial institution, sanctioned a loan facility of Rs. 10,00,00,000/- to Sree Sankara Community for Ayurveda Consciousness Limited (SSCAL). A loan agreement was executed on 23.09.2013, and SSCAL acknowledged the debt. SSCAL hypothecated movable assets on 24.09.2013, and KFC disbursed Rs. 9,35,00,000/- between 24.09.2013 and 04.10.2013. SSCAL created a first charge on its fixed assets through an equitable mortgage on immovable properties in Changanassery, Kottayam, and Anakkara. Directors and shareholders provided personal guarantees for full repayment. SSCAL defaulted on loan repayments, and its account was classified as NPA on 02.09.2015. KFC issued notices under Section 29 of the SFC Act and initiated revenue recovery
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Kerala Financial…
Loan agreement executed between Kerala…
Kerala Financial Corporation filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sree Sankara Community for Ayurveda Consciousness Limited. The Financial Creditor, a state financial institution established in 1953, sought to recover a debt of Rs. 25,31,99,615/- as of 04.11.2022. The Corporate Debtor had defaulted on loan repayments, leading to its account being classified as NPA on 02.09.2015. Despite multiple opportunities for settlement, including a compromise settlement application and OTS proposals, the debt remained unpaid. The Financial Creditor then initiated proceedings under the IBC.
Kerala Financial Corporation (KFC), a state financial institution, sanctioned a loan facility of Rs. 10,00,00,000/- to Sree Sankara Community for Ayurveda Consciousness Limited (SSCAL). A loan agreement was executed on 23.09.2013, and SSCAL acknowledged the debt. SSCAL hypothecated movable assets on 24.09.2013, and KFC disbursed Rs. 9,35,00,000/- between 24.09.2013 and 04.10.2013. SSCAL created a first charge on its fixed assets through an equitable mortgage on immovable properties in Changanassery, Kottayam, and Anakkara. Directors and shareholders provided personal guarantees for full repayment. SSCAL defaulted on loan repayments, and its account was classified as NPA on 02.09.2015. KFC issued notices under Section 29 of the SFC Act and initiated revenue recovery
…Kerala Financial…
Loan agreement executed between Kerala…