Asset Reconstruction Company (India) Limited Vs. M/S Sri Srivathsa Paper Mills Private Limited (CP/762/IB/2018) - Synopsis
Team SoOLEGAL 17 Mar 2021
In this case, Asset Reconstruction Company (India) Limited Vs. M/S Sri Srivathsa Paper Mills Private Limited (CP/762/IB/2018), by executing various documents, Corporate Debtor had obtained term loans and other facilities from Indian Overseas Bank. On February 10, 2015, the debt was transferred to Asset Reconstruction Company (India) Ltd. via the execution of an assignment instrument. The Corporate Debtor had failed to repay Rs 142,89,19,352 that was due on 6-4-2018, as well as failed to make a fixed deposit of Rs 2.5 crores as agreed. Despite several opportunities, the Corporate Debtor was unable to offer fair terms to OTS. Corporate Debtor had fairly admitted to the liability that was projected and did not resist the application of the Financial Creditor.
The Adjudicating Authority was satisfied that the Corporate Debtor had made a default in repayment of the loan sum. As a result, the petition was granted, and an Interim Resolution Professional was duly appointed.

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