2021 (5) TMI 1047 - Tri - Insolvency & Bankruptcy
Maintainability of petition - initiation of CIRP - Corporate Debtor defaulted in repaying the Arbitral Award and due license fee - Financial Creditors - existence of debt and dispute or not - HELD THAT:- In the present case, the Applicant has submitted that the award was passed on 10.07.2019 and the same becoming enforceable on expiry of a period of 90 days thereafter and since the Corporate Debtor has failed to make the payment in terms of award, has committed default in terms of Section 7 of Insolvency and Bankruptcy Code, 2016. Further, it must be noted that the arbitral award was passed on the basis of rental agreement dated 17.08.2005 and subsequently on 03.07.2006 in pursuance of which a Plot No. B-481 situated at Industrial Area, Bhiwadi, Rajasthan admeasuring 8444 sq. mts consisting of building and vacant land was given to Corporate Debtor for its business purpose. The basic nature of transaction is not covered under financial debt. Rental lease agreement can be operational debt but not financial debt. In any case, the transactions which transpired between the parties does not partake the character of a ‘Financial debt’ and as such the Applicant does not qualify to be a Financial Creditor in relation to the Corporate Debtor.
The instant Application is liable to be dismissed and accordingly stands Dismissed.