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2018 (8) TMI 1269 - AT - Insolvency and BankruptcyCorporate Insolvency Resolution Process - objections raised by the Corporate Debtor - according to learned counsel for the appellant, the respondent do not come within the meaning of ‘financial creditor’ as defined under section 5(7)&(8) of the I & B Code. - Held that:- What is in dispute is the debt as claimed, which is not clear as to whether such amount is payable pursuant to such agreement. Thus, there being a dispute about the claim arising out of a particular agreement, and as the respondents have not made it clear that as to against which agreement Rupees Five Crore has been adjusted, we are of the view that it was not a fit case for initiation of corporate insolvency resolution process under section 7, and parties should have been allowed to move before a Court of competent jurisdiction for appropriate relief. For the reasons aforesaid we have no other option but to set aside the impugned order dated 5th January, 2018. In effect, order (s), passed by the Adjudicating Authority appointing ‘Resolution Professional’, declaring moratorium, freezing of account, and all other order (s) passed by the Adjudicating Authority pursuant to impugned order and action taken by the ‘Resolution Professional’, including the advertisement published in the newspaper calling for applications all such orders and actions are declared illegal and are set aside. The ‘Corporate Debtor’ (company) is released from all the rigour of law and is allowed to function independently through its Board of Directors from immediate effect.
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