Wadia Ghandy & Co successfully acted for HDFC Bank Ltd. in an insolvency matter before the NCLT, Mumbai.
The NCLT admitted HDFC Bank’s petition as a financial creditor and initiated insolvency proceedings against Shree Sant Kripa Appliances Private Limited (part of the Syska group) for defaulting on multiple loan facilities.
The borrower argued that the petition was barred by limitation because the tenor of the facility was only 60 days and proceedings were initiated more than three years after the due date. The borrower also contended that there was no default since the bank had disbursed amounts just one day before declaring a default.
The NCLT accepted the bank’s argument that limitation stood extended even for short maturities when the borrower acknowledges the debt in subsequent letters. The NCLT also held that in case of multiple facilities with different maturity dates, there would be multiple dates of default to initiate insolvency proceedings even if there is a disbursement in one account just before another account is declared to be in default.
The matter was led by Partners Sameer Pandit and Sarrah Khambati, assisted by Associate Aastik Agarwal.
The deal reporting on this platform is based on the information received from law firms, and therefore, some details may be missing/incomplete. If your firm has not been credited for this deal, write to us at chanchal.makhija@thegreymatter.co.in mentioning your firm’s name, lawyers involved (including designation) and client represented.
