The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, filed by Vision Multiplex Private Limited (Applicant/Financial Creditor) against Starlite Builders Private Limited (Respondent/Corporate Debtor). The application pertains to the initiation of Corporate Insolvency Resolution Process (CIRP) based solely on the defaulted interest amount on debentures issued by the Corporate Debtor. The applicant argues that the interest amount, without adding the principal, can be treated as a financial debt under Section 5(8) of the IBC, 2016. The respondent contends that the principal amount is not yet due, and therefore, the interest
…Vision Multiplex Private Limited, the applicant, filed a petition to initiate CIRP against Starlite Builders Private Limited, the corporate debtor, based on the default in payment of interest on debentures. The debentures were issued by Starlite Builders Private Limited, and the date of redemption of the debenture certificate is 31.03.2026. As per the terms of the debenture certificate, the petitioner is entitled to interest at 6% per annum payable on face value plus security premium on quarterly rests. The interest and security premium due on 01.07.2021, 01.10.2021, and 01.01.2022 were not paid by the corporate debtor, leading to the application for default of interest for three quarters of the financial year 2021-22. The applicant argued that the interest amount,
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Starlite Builders Private Limited issued…
Interest paymen…
The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, filed by Vision Multiplex Private Limited (Applicant/Financial Creditor) against Starlite Builders Private Limited (Respondent/Corporate Debtor). The application pertains to the initiation of Corporate Insolvency Resolution Process (CIRP) based solely on the defaulted interest amount on debentures issued by the Corporate Debtor. The applicant argues that the interest amount, without adding the principal, can be treated as a financial debt under Section 5(8) of the IBC, 2016. The respondent contends that the principal amount is not yet due, and therefore, the interest
…Vision Multiplex Private Limited, the applicant, filed a petition to initiate CIRP against Starlite Builders Private Limited, the corporate debtor, based on the default in payment of interest on debentures. The debentures were issued by Starlite Builders Private Limited, and the date of redemption of the debenture certificate is 31.03.2026. As per the terms of the debenture certificate, the petitioner is entitled to interest at 6% per annum payable on face value plus security premium on quarterly rests. The interest and security premium due on 01.07.2021, 01.10.2021, and 01.01.2022 were not paid by the corporate debtor, leading to the application for default of interest for three quarters of the financial year 2021-22. The applicant argued that the interest amount,
…Starlite Builders Private Limited issued…
Interest paymen…