Deccan Charters initially paid a sum of Rs 3,07,800 to Krone which was adjusted against the accrued interest. However, Deccan Charters failed to make payment as per the terms laid out in the agreement. Further, in October, 2020 after a series of discussions, the Bengaluru-based company handed over four cheques for an amount of Rs 1,00,00,000 each, but those cheques were dishonoured on November 3, 2020.
Meanwhile, a Business Transfer Agreement was entered into between the Respondent (Deccan Charters) and GMDAPL (GSEC Monarch Deccan Aviation Private Limited), in 2019, wherein as per clause 1 of the BTA, GMDAPL agreed to undertake 100% of the assets and liabilities of the business undertaking of “Air Deccan” and settle all the liabilities of the respondent which included the liability of repayment of debt i.e. loan disbursed by the Applicant. Accordingly, it was claimed that the repayment of loan is the responsibility of GMDAPL.
Krone had filed the application under Section 7 of IBC seeking initiation of Corporate Insolvency Resolution Process against Deccan Charters over the default of Rs 9,82,24,077 on May 4, 2022.
