The National Company Law Tribunal (NCLT) Indore bench admitted the Corporate Insolvency Resolution Process (CIRP) petition and held that temporary holding on operations by the bank does not wipe out an established financial default.
The petition was filed by the Central Bank ofIndia the Financial Creditor against Narmada Extrusions Ltd the Corporate Debtor under Section 7 of the IBC to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to the default of ₹95,31,92,434 as of November 14, 2024.
However,the Corporate Debtor and the Financial Creditor have enjoyed a four decade long relationship with the bank. The latest credit facility enhancement was done by…