State Bank of India Vs S R Timber Products Private Limited (NCLT Kolkata)
NCLT Kolkata held that One Time Settlement proposal given by Corporate Debtor to Financial Creditor is a clear acknowledgment of debt and default. Hence, application filed by Financial Creditor u/s. 7 of IBC for initiating CIRP against S R Timber Products Private Limited admitted.
Facts- This is a petition preferred by State bank of India, the Financial Creditor, against S R Timber Products Private Limited, the Corporate Debtor or CD u/s. 7 of the Insolvency and Bankruptcy Code, 2016 seeking to initiate Corporate Insolvency Resolution Process (“CIRP”). The Financial Creditor claims that a sum of Rs.111,70,27,214.78 is due from the Corporate Debtor.
Conclusion- Held that admittedly an OTS proposal was given by the CD to the FC on 30.03.2023 which is a clear acknowledgment of debt and default. The debt, default, limitation and threshold being met, we find that the present petition filed by the Financial Creditor is complete in all respects and deserves to be admitted.
The application bearing CP (IB) No. 27/KB/2024 filed by State Bank of India, the Financial Creditor, under section 7 of the Code read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against S R Timber Products Private Limited, the Corporate Debtor, is hereby admitted.
