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2018 (6) TMI 851 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - whether the Applicant answers the description of “Financial Creditor” and “Financial Debt”? - Held that:- The inflows and outflows are distanced by time and there is a compensation for time value of money. It is significant to notice that in order to satisfy the requirement of this provision, the financial transaction should be in the nature of debt and no equity has been implied by the opening words of Section 5(8) of the I&B Code. It is true that there are complex financial instruments which may not provide a happy situation to decipher the true nature and meaning of a transaction. Essentially in the case in hand 'Assured Returns' is associated with the delivery of possession of the aforementioned properties. The classical transaction which would cover the definition of financial debts is illustrated in sub-clause (a) of sub-section (8) of Section 5 i.e. the money borrowed against the payment of interest. Ld. Counsel of Applicants has been able to show material on record or otherwise that it is a financial transaction in which a debt has been disbursed against the consideration for the time value of money and he being the Financial Creditor is entitled To trigger the insolvency process against the respondent in accordance with Section 7 of the I&B Code. The petition filed by the applicant / financial creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 is hereby admitted for initiating the Corporate Resolution Process and declare a moratorium and public announcement as stated in Section 13 of the I&B Code, 2016. The moratorium is declared for the purposes referred to in Section 14 of the Insolvency and Bankruptcy Code, 2016.
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