Case Law Details
Bank of India Vs Future Retail Limited (NCLT Mumbai)
The present intervention petition filed by the Amazon.com is dismissed as it is not even a stakeholder in respect of corporate debtor. Held that being a third-party, Amazon.com cannot question the initiation of CIRP proceedings u/s 7 of IBC 2016 against the Corporate Debtor.
Facts-
Financial Creditor (Bank of India), provided various credit facilities to the Corporate Debtor amounting to Rs. 1249.48 Crores and non-fund-based limits to the tune of Rs. 192.14 Crores, which were extended from time to time. These facilities were restructured under sanction Letter dated 17.04.2021 and Framework Agreement dated 26.04.2021.
When the Corporate Debtor defaulted in repayment, the account was required to be classified as NPA on 30.11.2020 as per RBI norms. However, due to stay on asset classification imposed by the Supreme Court vide order dated 03.09.2020, the asset classification was maintained as standard, although the default persisted.
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