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2020 (6) TMI 755 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL NEW DELHIMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - financial debt - default or not - application was brought before the Adjudicating Authority at the instance of Vishnu Dutt Gupta, the Appeal claims that Vishnu Dutt Gupta was not authorized and the list of dates states that Vishnu Dutt Gupta was removed as MD from the Board on 6th February, 2019 - HELD THAT:- The fact remains that Vishnu Dutt Gupta still appears to be Director of the Corporate Debtor and the Adjudicating Authority, accepted the material pointed out by the said Director, which was found to be relevant. We do not intend to interfere. The Appellants may deny that they were not signatories to the Subordination Agreement but in the face of Affidavit of the Officer of Canara Bank and Subordination Agreement pointed out by the Officer, it can be said that the Appellants cannot maintain the Application under Section 7. The Adjudicating Authority need not settle and decide the claim of the Appellants denying the signatures in the Subordination Agreement of 2014. That is not necessary for the Adjudicating Authority to decide in proceeding under Section 7 of IBC. Considering the documents executed in favour of Canara Bank in ordinary course of business which is admitted by Ajay Kumar Agarwal, it must be said that the Appellants failed to establish that the loan extended by them is payable and hence there is “default”. In the absence of settling dues of Canara Bank, Appellants cannot claim that their dues have become payable, and thus there is “default”. The Adjudicating Authority has after considering the record, found that there was material in the form of MOU dated 29.04.2007 and Agreement dated 8th February, 2012 which dealt with interest free unsecured loan and equity shares to be allotted to both the parties and concluded that there was no time value of money and that it was not financial debt. Keeping in view the relationships between the parties and record, we find no reason to interfere with such findings recorded by the Adjudicating Authority. There are no substance in the Appeal - appeal dismissed.
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