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2019 (9) TMI 1682 - NATIONAL COMPANY LAW TRIBUNAL KOLKATA BENCHMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - time value of money - HELD THAT:- In the present case, it is not in dispute that first transaction has been of loan carrying interest at a specified rate payable by the borrower. Subsequently, Financial Creditor has given money to the Corporate Debtor which has been used and utilized by the Corporate Debtor for its business purposes, but Corporate Debtor has disputed that interest was payable thereon. Further, the Corporate Debtor has not adduced any material on record to show that the invoices for interest were raised just to prevent the Corporate Debtor from filing of petition under section 241/242 of the Companies Act, 2013 or to remain in control of the management and ownership of Financial Creditor. Be that as it may, the transactions remain of the nature of debt - the disbursement of money by the Financial Creditor to the Corporate Debtor can safely be concluded as a transaction of financial debt involving time value of money. There are merits in the claim of the Financial Creditor that IBC, 2016 is not a recovery mechanism and, therefore, the provisions of The Bengal Money Lenders Act, 1940 being part of that legislation which operates in different field i.e. recovery of dues, could not be applied to proceedings under IBC, 2016. In any case, such provisions being contrary to the provisions of IBC, 2016 are not applicable in view of specific provisions of section 238 of IBC, 2016. The Corporate Debtor be admitted under CIRP as per the provisions of Section 7 of IBC, 2016. The Financial Creditor has suggested the name of Interim Resolution Professional which we approve. The petition is complete in all other aspects and complies with the requirements of IBC, 2016 and Regulations, hence, petition is admitted. The petition filed by the Financial Creditor under section 7 of the Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, Manthan Broadband Services Private Limited, is hereby admitted - moratorium declared.
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