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The Special Bench of the National Company Law Tribunal, Chennai, has ordered initiation of insolvency proceedings against the Chennai-based industrialist C Sivasankaran’s Siva Industries & Holdings Ltd on defaulting ₹130.30 crore and failing to discharge duty as a guarantor on loans given to another firm. This was on an application filed by IDBI Bank.
The NCLT also appointed Savan Godiawala as interim resolution professional to oversee the process.
Siva Ventures took the loan and the company was later merged with Siva Industries & Holdings Ltd from April 1, 2011. Siva Industries and Holdings Ltd was guarantor to Rudhra Minerals Pte Ltd, which defaulted in paying ₹79.45 crore as on October 1, 2018.
Siva Ventures had availed credit facility of ₹62 crore in 2011 from IDBI Bank. It again availed ₹15 crore and loan equivalent receipt limit of ₹4.5 crore to Rudhra Minerals over and above the original sanction already provides to Siva Ventures. After the merger with Siva Industries & Holdings, it became liable for the loans, says the NCLT order.
The bank rejected a one-time settlement of ₹48.68 crore offered by, filed insolvency petition against Siva Industries & Holdings. The NCLT admitted the petition.
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