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2022 (1) TMI 461 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - it is alleged that Appellant failed to produce proper authorisation for initiation of CIRP and has filed the Petition with false and fabricated documents - HELD THAT:- Keeping in view the definition of ‘Financial Debt’ as defined under Section 5(8) of the Code; the nature of transactions entered into between both the parties; that there are several transactions some executed on the same day, between ‘Satra Realty and Builders Limited’ and ‘Satra Properties Development Limited’ together with the admitted fact that the Respondent Company was a part of the ‘Satra Group’; that the Directorship is common in all the ‘Satra Companies’; it was only on 09.04.2018 that the name of the Respondent Company was changed to Centrio Lifespaces Limited with the new management stepping in; that the statement of account appended to the Petition is signed by Mr. Praful Satra, the erstwhile Director of the Respondent Company; the entries of debit and credit dated 07.11.2015, 10.11.2015, 24.11.2015 (Exhibit K) establish several internal transactions between the ‘Satra Group Companies’; the Auditor’s Report detailing the Related Party transactions which figures the names of common Directors and the corresponding transactions; therefore the Appellant has failed to satisfy that the transaction in question is a ‘Financial Debt’ as defined in the Code and a default has occurred. The scope and objective of the IBC is to be cautious in admitting an Application and not encourage recovery proceedings. Appeal dismissed.
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