The National Company Law Tribunal has admitted insolvency proceedings against Millenium Starch India Private Limited on a petition filed by Axis Bank Limited holding that technical objections cannot defeat a Corporate Insolvency Resolution Process (CIRP) once the existence of financial debt and default is established.
The facts stated that Axis Bank had approved loan facilities up to the value of ₹40 crore in favor of Millenium Starch under a scheme of multiple banking on May 31, 2022 which included an open cash credit facility of ₹25 crore and term loan facilities of ₹15 crore each. The borrower had entered into various loan documents such as hypothecation deed, guarantee deed and deposit memorandum of title…