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2019 (4) TMI 1864 - AT - Insolvency and BankruptcyMaintainability of application - CIRP process - Corporate Debtor failed to make repayment of its dues - whether the appellant comes within the meaning of ‘Financial Creditor’ as defined under Section 5(7) r/w (8) of the ‘I&B Code’? - HELD THAT:- In the present case, it is admitted that the appellant Mr. Ravinder Pal Singh Lamba has invested the money for running the business of ‘M/s. Satkar Air Cargo Services Pvt. Ltd.’ (‘Corporate Debtor’), as accepted in the pleadings of the respondent. The record also shows that it is a ‘long term borrowing’. Therefore, it is clear that the amount was disbursed by the appellant against the consideration for time value of money and the ‘Corporate Debtor’ is shown as ‘long-term borrowings’ for running the company. For the reason aforesaid, we hold that the appellant comes within the meaning of ‘Financial Creditor’, as the amount disbursed comes within the meaning of ‘Financial Debt’. In the present case, it is not in dispute that the ‘Corporate Debtor’ has defaulted in making payment and record shows that the appellant has disbursed the amount and therefore has right to claim - Having held that the appellant comes within the definition of ‘Corporate Debtor’, we are of the view that the application filed by the appellant under Section 7 was required to be admitted by the Adjudicating Authority, but the Adjudicating Authority having failed to consider the matter in proper perspective, we set aside the impugned order dated 21st August, 2018 and remit the case to the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi to admit the application under Section 7 after notice to the ‘Corporate Debtor’, who in the meantime, may settle the claim. Appeal allowed.
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