Case Law Details
State Bank of India Vs Anupriya Management Private Limited (NCLT Kolkata)
Introduction: In a significant ruling by the National Company Law Tribunal (NCLT) Kolkata, the court addressed the initiation of Corporate Insolvency Resolution Process (CIRP) against both the principal borrower, State Bank of India, and the corporate guarantor, Anupriya Management Private Limited, under Section 7 of the Insolvency and Bankruptcy Code.
Detailed Analysis: State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code against Anupriya Management Private Limited, seeking to initiate CIRP due to debt default amounting to Rs. 40,90,77,041.00. The Corporate Debtor defaulted on payments to various financial creditors, leading to its classification as a Non-Performing Asset (NPA).
The respondent, Anupriya Management Private Limited, contested the application, arguing non-compliance with certain provisions and proposing alternatives for resolving the debt, including completion of a real estate project to meet bank liabilities.
However, the NCLT Kolkata examined relevant laws, including Sections 127 and 128 of the Contract Act and Section 60(2) of the I&B Code, along with precedents and observations from the Supreme Court and NCLAT. It determined that simultaneous CIRP proceedings against the principal borrower and corporate guarantor are permissible, as established in previous judgments.
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