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2019 (8) TMI 1713 - Tri - Insolvency and BankruptcyMaintainability of application - Initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors or not - Financial debt - existence of debt and dispute or not - Whether the subordination agreement has to be taken into consideration or not to decide the matter? - HELD THAT:- In the present case, the loan was provided as unsecured loan and there is no interest and no time is fixed to repay the same. Even in the financial statements for financial year 2015-16 and financial year 2016-17 of the corporate debtor, relied upon by the petitioners to support their claim, do not reflect any provision for interest against unsecured loans given by the petitioners. Therefore, the said loan does not have consideration for time value of money and will not come under the category of financial debt. Consequently, the petitioners will not fall under the category of financial creditors as defined in the IB Code, 2016. Further, there is no default as per the provisions of the I and B Code, 2016, in absence of any agreement with regard to the repayment period of the said unsecured loans. The unsecured loan provided by the petitioners in the present case will not fall under the category of financial debt. It is also proved that the debt has not become due and same is not payable at this point of time as the petitioners are also parties to the subordination agreement and the clauses are binding on them. Therefore, the petitioners cannot be treated as the financial creditors. Petition cannot be admitted.
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