Morgan Securities filed the plea under Section 7 of the IBC. It sought initiation of corporate insolvency resolution process against BPL. It also sought appointment of an interim resolution professional and declaration of moratorium.
The alleged default amount was ₹13,23,70,00,924. The date of default was stated to be June 14, 2007.
The dispute arose from bill discounting facilities sanctioned in 2002 and 2003. The facilities were for ₹6 crore and ₹6.5 crore.
Morgan Securities said that funds were disbursed against bills of exchange accepted by BPL. It claimed that BPL was jointly and severally liable to repay the amount with interest.
Morgan Securities later invoked arbitration. An arbitral award was passed in its favour on December…