State Bank of India (Financial Creditor) filed a Section 7 IBC application against Surya Foundry Private Limited (Corporate Guarantor) for initiating CIRP, based on a Corporate Guarantee dated 28.03.2023. The Principal Borrower, Mubarak Overseas Private Limited, defaulted on credit facilities, leading to its account being declared NPA and the invocation of the corporate guarantee. The Corporate Guarantor disputed the guarantee's validity, alleging fraud, fabrication, and lack of authorization, citing pending proceedings in various fora (DRT, EOW, High Court, NCLT).
State Bank of India (Financial Creditor) filed an application under Section 7 of the IBC against Surya Foundry Private Limited (Corporate Guarantor) for initiating the Corporate Insolvency Resolution Process (CIRP).
The application is based on a Corporate Guarantee dated 28.03.2023, securing financial facilities extended to the Principal Borrower, Mubarak Overseas Private Limited.
The amount of default is Rs. 58,11,03,814.51/-, and the date of default is 01.01.2025.
The Principal Borrower initially availed a cash credit facility of Rs. 40 Lakhs, which was periodically renewed and enhanced, reaching a total of Rs. 65.33 Crore by March 2023.
The Corporate Guarantor executed continuing guarantee deeds and renewed equitable mortgages to secure these credit facilities.
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Principal Borrower…
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State Bank of India (Financial Creditor) filed a Section 7 IBC application against Surya Foundry Private Limited (Corporate Guarantor) for initiating CIRP, based on a Corporate Guarantee dated 28.03.2023. The Principal Borrower, Mubarak Overseas Private Limited, defaulted on credit facilities, leading to its account being declared NPA and the invocation of the corporate guarantee. The Corporate Guarantor disputed the guarantee's validity, alleging fraud, fabrication, and lack of authorization, citing pending proceedings in various fora (DRT, EOW, High Court, NCLT).
State Bank of India (Financial Creditor) filed an application under Section 7 of the IBC against Surya Foundry Private Limited (Corporate Guarantor) for initiating the Corporate Insolvency Resolution Process (CIRP).
The application is based on a Corporate Guarantee dated 28.03.2023, securing financial facilities extended to the Principal Borrower, Mubarak Overseas Private Limited.
The amount of default is Rs. 58,11,03,814.51/-, and the date of default is 01.01.2025.
The Principal Borrower initially availed a cash credit facility of Rs. 40 Lakhs, which was periodically renewed and enhanced, reaching a total of Rs. 65.33 Crore by March 2023.
The Corporate Guarantor executed continuing guarantee deeds and renewed equitable mortgages to secure these credit facilities.
…Principal Borrower…
CC Limit sancti…