Buldana Urban Cooperative Credit Society Ltd. Vs Amar Seeds Private Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench admitted a Section 7 application filed by Buldana Urban Cooperative Credit Society Limited against Amar Seeds Private Limited for initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.
The financial creditor claimed a default of Rs. 24,26,03,387 as on 06.05.2025 arising from a loan facility of Rs. 18 crore sanctioned to the corporate debtor under a sanction letter dated 10.04.2023. A loan agreement dated 29.04.2023 and mortgage deed dated 18.04.2023 were executed to secure the facility. The loan carried interest at 15% for a tenure of 120 months including a 12-month moratorium period.
According to the applicant, the moratorium expired on 29.04.2024 and the first instalment became due on 30.04.2024. The corporate debtor failed to pay instalments due on 30.04.2024, 31.05.2024 and 30.06.2024. Under the loan agreement, failure to pay three consecutive instalments entitled the lender to recall the entire loan amount. The loan account was subsequently classified as Non-Performing Asset (NPA) on 30.11.2024. Demand notices dated 27.06.2024 and 19.09.2024 were issued, but repayment was not made. The date of default was stated as 31.07.2024.
