Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2021 (2) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 1216 - NATIONAL COMPANY LAW TRIBUNAL, CHENNAIMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - privity of contract or not - HELD THAT:- The unregistered Memorandum of Understanding (MoU) dated 05.07.2019 is rejected. The Applicant has also filed Deed of Mortgage dated 20.10.2015 registered as document No. 3034/2015 on the file of the Sub-Registrar, Srirangam executed between Mr. A. Francis in his individual capacity and the Applicant herein. In this registered Deed of Mortgage, the said Mr. A. Francis has mortgaged his individual property as a security to the loan availed by him from the applicant. It is clearly mentioned that Mr. A. Francis has obtained loan and towards that loan he has offered his property as mortgage to the applicant herein. There is no Privity of Contract between the applicant and the Corporate Debtor. The Applicant failed to satisfy this Adjudicating Authority regarding disbursement of loan into the accounts of the Corporate Debtor. The loan alleged to have been availed by the Corporate Debtor is not reflected in the statement of accounts filed along with the application. The entire transaction was on 20.10.2015. The argument of counsel for Applicant solely relies on the unregistered Memorandum of Understanding (MoU) dated 05.07.2019 wherein he states that since the Corporate Debtor has executed the above MoU, the Corporate Debtor owes a total outstanding amount of ₹ 1,00,00,000/- to the Applicant and 4 other creditors. However, proof of payment/disbursement into the account of the Corporate Debtor has not been submitted by the applicant. Further, no interest has been serviced from the accounts of the Corporate Debtor. It is clear that the Applicant has failed to prove debt and default. Application dismissed.
|