In a recent ruling, the National Company Law Tribunal (NCLT), Ahmedabad Bench, allowed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against Sumarrow Impex LLP based on a petition filed by the US-based financial creditor, Drip Capital Inc.
The application was filed by Drip Capital Inc., the financial creditor a USA based company engaged in the business of acquisition of receivables from assignor/ corporate debtor by accepting assignment of such receivables or financing such receivables on recourse basis.
The financial creditor and the Corporate Debtor had entered into Receivables Purchase Agreement dated 13.06.2023 for…