R. K. Purushothaman Vs Carbyne Spartek Private Limited (NCLT Chennai)
The National Company Law Tribunal (NCLT), Chennai, considered a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The applicant, a financial creditor, claimed an outstanding debt of ₹3,62,08,997 as on 31.10.2024, comprising ₹2,95,00,000 as principal and ₹67,08,997 as interest, with the date of default stated as 25.10.2024.
The financial creditor had disbursed a total loan of ₹2,95,00,000 to a principal borrower under a loan agreement dated 09.09.2020 at an interest rate of 8% per annum. The corporate debtor had executed a deed of guarantee, thereby acting as a corporate guarantor for the loan. The principal borrower, which operated a football club, defaulted on repayment of interest during 2023. A recall notice dated 19.09.2024 demanding repayment was issued but remained uncomplied, resulting in an event of default. The financial creditor subsequently invoked the corporate guarantee through a recall notice dated 15.10.2024.
Despite being given an opportunity, the corporate debtor failed to file any reply, and its right to respond was forfeited. The Tribunal examined documents including the loan agreement, guarantee deed, promissory note, recall notices, and financial statements.
