The case involves an application filed by State Bank of India (erstwhile State Bank of Hyderabad) under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Shri Nilkanta Rao, the personal guarantor of Shivani Alloys Steel Casting Ltd. The corporate debtor had availed financial assistance of INR 15 Crores from the financial creditor but failed to honor its obligations under various loan agreements. Consequently, the loan account was declared NPA on 16.04.2012.
State Bank of India (formerly State Bank of Hyderabad) extended financial assistance of INR 15 Crores to Shivani Alloys Steel Casting Ltd. Shri Nilkanta Rao acted as the personal guarantor for the loan. Shivani Alloys Steel Casting Ltd. defaulted on its loan obligations, leading to its account being declared a Non-Performing Asset (NPA) on 16.04.2012. Shri Nilkanta Rao executed a guarantee deed on 10.02.2003 to secure the financial assistance. The Financial Creditor issued a Form B Demand Notice dated 28.08.2021 to Shri Nilkanta Rao, requesting him to honor the agreement. The personal guarantor did not contest the matter and consented to proceed further. The Adjudicating Authority passed an interim order on 25.10.2022, declaring an interim moratorium and appointing Mr.
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Loan Agreement executed…
Respondent No.1, Personal Guarantor executed a…
The case involves an application filed by State Bank of India (erstwhile State Bank of Hyderabad) under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Shri Nilkanta Rao, the personal guarantor of Shivani Alloys Steel Casting Ltd. The corporate debtor had availed financial assistance of INR 15 Crores from the financial creditor but failed to honor its obligations under various loan agreements. Consequently, the loan account was declared NPA on 16.04.2012.
State Bank of India (formerly State Bank of Hyderabad) extended financial assistance of INR 15 Crores to Shivani Alloys Steel Casting Ltd. Shri Nilkanta Rao acted as the personal guarantor for the loan. Shivani Alloys Steel Casting Ltd. defaulted on its loan obligations, leading to its account being declared a Non-Performing Asset (NPA) on 16.04.2012. Shri Nilkanta Rao executed a guarantee deed on 10.02.2003 to secure the financial assistance. The Financial Creditor issued a Form B Demand Notice dated 28.08.2021 to Shri Nilkanta Rao, requesting him to honor the agreement. The personal guarantor did not contest the matter and consented to proceed further. The Adjudicating Authority passed an interim order on 25.10.2022, declaring an interim moratorium and appointing Mr.
…Loan Agreement executed…
Respondent No.1, Personal Guarantor executed a…