This judgment addresses a Section 7 application under the Insolvency and Bankruptcy Code, 2016, filed by J.M. Financial Asset Reconstruction Company Limited (Financial Creditor) against Howrah Mills Company Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The case involved multiple interim applications and appeals to the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. Key contentions included the alleged assignment of debt to Abinandan Holdings Private Limited, the impact of civil court injunctions, and the Financial Creditor's authorization. The NCLAT ultimately directed the admission of the CIRP, finding debt and default established and rejecting the debt assignment to Abinandan. The Supreme Court upheld
…J.M. Financial Asset Reconstruction Company Limited (Financial Creditor) filed C.P.(IB) No. 04/KB/2019 under Section 7 of the IBC, 2016, against Howrah Mills Company Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP).
The Financial Creditor claimed a financial debt of Rs. 40,38,00,000/- and an amount in default of Rs. 54,58,33,004.02 as on 15.12.2018.
The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.12.2025.
A deed of assignment of financial assets of the Corporate Debtor was executed between J.M. Financial Asset Reconstruction Company (Financial Creditor/Intending Assignor) and Abhinandan Holding (Intending Assignee) on 15.01.2020.
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This judgment addresses a Section 7 application under the Insolvency and Bankruptcy Code, 2016, filed by J.M. Financial Asset Reconstruction Company Limited (Financial Creditor) against Howrah Mills Company Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The case involved multiple interim applications and appeals to the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. Key contentions included the alleged assignment of debt to Abinandan Holdings Private Limited, the impact of civil court injunctions, and the Financial Creditor's authorization. The NCLAT ultimately directed the admission of the CIRP, finding debt and default established and rejecting the debt assignment to Abinandan. The Supreme Court upheld
…J.M. Financial Asset Reconstruction Company Limited (Financial Creditor) filed C.P.(IB) No. 04/KB/2019 under Section 7 of the IBC, 2016, against Howrah Mills Company Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP).
The Financial Creditor claimed a financial debt of Rs. 40,38,00,000/- and an amount in default of Rs. 54,58,33,004.02 as on 15.12.2018.
The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.12.2025.
A deed of assignment of financial assets of the Corporate Debtor was executed between J.M. Financial Asset Reconstruction Company (Financial Creditor/Intending Assignor) and Abhinandan Holding (Intending Assignee) on 15.01.2020.
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