Krishkan Investment Private Limited Vs Utkal Steels Limited (NCLT Ahmedabad)
The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by the Financial Creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The matter was transferred from the Cuttack Bench to the Ahmedabad Bench of the NCLT because the Corporate Debtor had acted as a corporate guarantor for another company, the Principal Borrower, against whom CIRP had already been initiated under Section 9.
The Financial Creditor stated that it had sanctioned an MSME Business Loan Facility of ₹4 crore to the Principal Borrower on 2 September 2024. The Corporate Debtor, along with two other corporate guarantors, executed a Deed of Guarantee in favour of the Financial Creditor. The Principal Borrower also created security over its 2.10 MW wind energy-based power project through a deed of hypothecation. Initially, the loan account was serviced through a few instalment payments, but no further payments were made thereafter by either the Principal Borrower or the Corporate Debtor. The Principal Borrower informed the Financial Creditor of its inability to repay the loan through a letter dated 13 January 2025. Despite repeated follow-ups, reminder emails, and notices, the dues remained unpaid. Consequently, a Recall Notice dated 26 February 2025 was issued to the Principal Borrower and the guarantors requiring payment within seven days. As no payment was received, the date of default was treated as 4 March 2025, and the outstanding amount as on 15 April 2025 stood at ₹4,16,51,899, including contractual and penal interest. The Financial Creditor also proposed Mr. Pankaj Bhattad as the Insolvency Resolution Professional.
