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2017 (9) TMI 1130 - AT - Insolvency and BankruptcyCorporate insolvency procedure - Insolvency & Bankruptcy Code, 2016 - eligible debt existence - Held that:- It is admitted that the appellant is debenture holder. The Respondent- 'Corporate Debtor' also pleaded that the appellant is Investor. From the relevant facts as we noticed above, we find that the Respondent- 'Corporate Debtor has a liability and obligation in respect of amount which is due to the debenture holder from the 'Corporate Debtor', including 'Financial Debt' i.e the amount due on maturity of debentures. 32. The 'default' means non-payment of debt as defined in sub-section (12) of Section 3, as below:- “(12) “default” means non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and is not repaid by the debtor or the corporate debtor, as the case may be” The fact as pleaded and not disputed by Respondent - 'Corporate Debtor' that the 'debenture holder' (Appellant) and amount matured in the year 2011, 2012 and 2013 has not been paid. Thus, we find there is a default as defined under section 3(12) of the I & B Code. The 'Corporate Debtor' had a liability and obligation in respect of claim of respondent which includes the 'Financial Debt', including those come within clause (c) of sub-section (8) of Section 5. As per the agreement, the same was liable to be paid from the date of maturity along with interest, if any and the same having not paid, the default of debt is apparent. This apart we find that the amount of debt and interest, as shown by appellant was to be disbursed against consideration for time value of the money. Therefore, it cannot be stated that debentures on maturity do not come within the purview of amount payable against the consideration for the time value of the money.Learned Adjudicating Authority having admitted the application under Section 7, the application being complete, no interference is called for.
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