arch had knocked on the doors of the Mumbai bench National Company Law Tribunal (NCLT) against the over seven decade old garment manufacturer and a pioneer in the school uniform fabric segment after defaulting on dues of over Rs 414 crore.
“The corporate debtor (S Kumars) has neither objected nor denied the existence of the loan, which is in default,” observed the Division Bench Justice PN Deshmukh and Technical Member Shyam Babu Gautam Seen in order of 18 November.
The tribunal noted that the debtor had made a compromise offer on July 18, 2020 and a revised offer on August 12, 2020, but failed to make the payment. “The debtor companies were working diligently on the resolution proposal and were serious about settling the dues.” S Kumars had given corporate guarantee on the loan taken by the subsidiary company. SKM FabricsFrom Central Bank of India in 2009. The loan was declared a non-performing asset on June 30, 2010, and ARC acquired the right to recover the loan in March 2014.
Advice Rohan AgarwalAppearing for the lenders, along with Nishit Dhruva of law firm MDP & Partners, argued that the petition was complete in all respects and that the default was confirmed by sufficient evidence.