CFM Asset Reconstruction Private Limited Vs Bhagirath Construction Company Private Limited (NCLT Ahmedabad)
NCLT Ahmedabad held that application under section 7 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor [Bhagirath Construction Company Private Limited] admitted as default provide and application filed within limitation period.
Facts- The present application is filed by the financial creditor u/s. 7 of IBC, 2016 read with Rule 4 of IBBI (AAA) Rules, 2016 to initiate corporate insolvency resolution process against the Corporate Debtor viz., Bhagirath Construction Company Private Limited for the total default amount of Rs.28,48,40,687/- along with interest as on 30.07.2023. The default date is stated to be 05.02.2020.
The case of the Financial Creditor is that the Corporate Debtor had availed credit facility provided by the Mehsana Urban Co-operative Bank Ltd vide credit approval letter dated 22.03.2024 for an amount of Rs.4,00,00,000/- at 13% rate of interest. The CD availed further loan vide loan application dated 21.01.2005 for an amount of Rs.1,00,00,000/- at 12% rate of interest. The acceptance of both credit facilities against immovable property entered between the applicant and the CD on 31.03.2004 and 20.01.2005 has been placed on record. It is submitted that the accounts of the corporate debtor became NPA on 31.12.2004 and 20.04.2005 on account of default committed by the CD for both the loans.
