Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. West Face Hospitality and Management Pvt. Ltd for defaulting on a debt of Rs 26,29,04,506.74 as of 26.05.2019. The Corporate Debtor had approached the Financial Creditor for a term loan of Rs. 15 Crores for the construction of a boutique hotel. A sanction letter and hypothecation cum loan agreement were executed in May 2010, creating an equitable mortgage. The Corporate Debtor defaulted, and the account was classified as NPA on 31st July, 2013. The Financial Creditor issued a notice under the SARFAESI Act, 2002, to take possession of the secured asset. The Corporate Debtor challenged the possession notice,
…The Bank of India extended a term loan of Rs. 15 Crores to M/s. West Face Hospitality and Management Pvt. Ltd. for the construction of a boutique hotel. The loan was secured by an equitable mortgage on the Corporate Debtor's immovable property and a pledge of 30% of equity shares. The Corporate Debtor defaulted on the repayment, leading to the account being classified as a Non-Performing Asset (NPA) on July 31, 2013. The Financial Creditor initiated proceedings under the SARFAESI Act, 2002, to recover the debt. The Corporate Debtor challenged the possession notice issued under SARFAESI Act, leading to intervention by the Debt Recovery Tribunal (DRT). Several One Time Settlement (OTS) proposals were exchanged between December 8, 2015, and April 18, 2018, but the
…Sign in to view the parties.
Sanction Letter and…
Term loan account…
Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. West Face Hospitality and Management Pvt. Ltd for defaulting on a debt of Rs 26,29,04,506.74 as of 26.05.2019. The Corporate Debtor had approached the Financial Creditor for a term loan of Rs. 15 Crores for the construction of a boutique hotel. A sanction letter and hypothecation cum loan agreement were executed in May 2010, creating an equitable mortgage. The Corporate Debtor defaulted, and the account was classified as NPA on 31st July, 2013. The Financial Creditor issued a notice under the SARFAESI Act, 2002, to take possession of the secured asset. The Corporate Debtor challenged the possession notice,
…The Bank of India extended a term loan of Rs. 15 Crores to M/s. West Face Hospitality and Management Pvt. Ltd. for the construction of a boutique hotel. The loan was secured by an equitable mortgage on the Corporate Debtor's immovable property and a pledge of 30% of equity shares. The Corporate Debtor defaulted on the repayment, leading to the account being classified as a Non-Performing Asset (NPA) on July 31, 2013. The Financial Creditor initiated proceedings under the SARFAESI Act, 2002, to recover the debt. The Corporate Debtor challenged the possession notice issued under SARFAESI Act, leading to intervention by the Debt Recovery Tribunal (DRT). Several One Time Settlement (OTS) proposals were exchanged between December 8, 2015, and April 18, 2018, but the
…Sanction Letter and…
Term loan account…