Canara Bank Limited has filed a petition to the National Company Law Tribunal, Amaravati Bench, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against BGR Energy Systems Limited for the default of ₹71.35 Crores.
The application was registered by the Tribunal on October 24, 2024.
Canara Bank Limited has submitted the petition as a financial creditor.
The procedure for the CIRP has been laid down in the Insolvency and Bankruptcy Code which has been enacted to resolve a company’s insolvency and keep it operational through the process of revival.
The CIRP is a recovery mechanism for creditors of a corporate debtor.
