Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vitthal Corporation Ltd., seeking commencement of CIRP. The application pertains to a financial debt arising from credit facilities granted to farmers for sugarcane cultivation, with the corporate debtor acting as a guarantor.
Union Bank of India granted credit facilities of Rs. 30 crores to farmers for sugarcane cultivation under the UGC Scheme.
Vitthal Corporation Ltd. provided a corporate guarantee dated 14.09.2016 for the said credit facilities.
The dates of default are stated as 31.01.2019 and 31.10.2019.
The total amount of claim in default as on 31.08.2025 is Rs. 46,81,83,292.69/-.
The loan accounts were classified as Non-Performing Assets (NPA) on 31.03.2021 and 30.04.2021.
A One Time Settlement (OTS) proposal dated 12.05.2023 was submitted by the Corporate Debtor.
The Financial Creditor invoked the guarantee vide a demand notice dated 14.12.2021.
The Corporate Debtor argued that the actual date of default should be 16.12.2021, two days after the invocation of the guarantee.
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Vitthal Corporation…
One of the dates of…
Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vitthal Corporation Ltd., seeking commencement of CIRP. The application pertains to a financial debt arising from credit facilities granted to farmers for sugarcane cultivation, with the corporate debtor acting as a guarantor.
Union Bank of India granted credit facilities of Rs. 30 crores to farmers for sugarcane cultivation under the UGC Scheme.
Vitthal Corporation Ltd. provided a corporate guarantee dated 14.09.2016 for the said credit facilities.
The dates of default are stated as 31.01.2019 and 31.10.2019.
The total amount of claim in default as on 31.08.2025 is Rs. 46,81,83,292.69/-.
The loan accounts were classified as Non-Performing Assets (NPA) on 31.03.2021 and 30.04.2021.
A One Time Settlement (OTS) proposal dated 12.05.2023 was submitted by the Corporate Debtor.
The Financial Creditor invoked the guarantee vide a demand notice dated 14.12.2021.
The Corporate Debtor argued that the actual date of default should be 16.12.2021, two days after the invocation of the guarantee.
Vitthal Corporation…
One of the dates of…