The case involves a civil appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the National Company Law Tribunal (NCLT), Hyderabad, against Kranthi Edifice Pvt. Ltd., a Corporate Debtor. The appellant, M. Suresh Kumar Reddy, is a suspended Director of the Corporate Debtor. The respondent, Canara Bank, filed the application as a successor to Syndicate Bank, which had originally sanctioned credit facilities to the Corporate Debtor. The NCLT admitted the application, leading to a moratorium. The appellant's appeal against the NCLT order was dismissed by the National Company Law Appellate Tribunal (NCLAT).
Syndicate Bank sanctioned credit facilities to Kranthi Edifice Pvt. Ltd. (Corporate Debtor), valid until February 28, 2017, including a Secured Overdraft Facility of Rs. 12 crores and a Bank Guarantee limit of Rs. 110 crores. As of November 30, 2019, the Corporate Debtor's liability under the Secured Overdraft Facility was Rs.74,52,87,564.93, and the liability towards outstanding Bank Guarantees was Rs.19,16,20,100. The Government of Telangana requested Syndicate Bank to extend the Bank Guarantees, but the bank did not. The Corporate Debtor also requested an extension. Canara Bank, as the successor to Syndicate Bank, filed an application under Section 7 of the IBC before the NCLT, Hyderabad. The NCLT admitted the application on June 27, 2022, and declared a moratorium.
…Sign in to view the parties.
Syndicate Bank issued a…
The credit facilities…
The case involves a civil appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the National Company Law Tribunal (NCLT), Hyderabad, against Kranthi Edifice Pvt. Ltd., a Corporate Debtor. The appellant, M. Suresh Kumar Reddy, is a suspended Director of the Corporate Debtor. The respondent, Canara Bank, filed the application as a successor to Syndicate Bank, which had originally sanctioned credit facilities to the Corporate Debtor. The NCLT admitted the application, leading to a moratorium. The appellant's appeal against the NCLT order was dismissed by the National Company Law Appellate Tribunal (NCLAT).
Syndicate Bank sanctioned credit facilities to Kranthi Edifice Pvt. Ltd. (Corporate Debtor), valid until February 28, 2017, including a Secured Overdraft Facility of Rs. 12 crores and a Bank Guarantee limit of Rs. 110 crores. As of November 30, 2019, the Corporate Debtor's liability under the Secured Overdraft Facility was Rs.74,52,87,564.93, and the liability towards outstanding Bank Guarantees was Rs.19,16,20,100. The Government of Telangana requested Syndicate Bank to extend the Bank Guarantees, but the bank did not. The Corporate Debtor also requested an extension. Canara Bank, as the successor to Syndicate Bank, filed an application under Section 7 of the IBC before the NCLT, Hyderabad. The NCLT admitted the application on June 27, 2022, and declared a moratorium.
…Syndicate Bank issued a…
The credit facilities…