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2018 (9) TMI 1611 - Tri - Insolvency and BankruptcyCorporate insolvency process - outstanding financial debt - Held that:- There are Promissory Notes given by the Corporate Debtor through their directors/authorised signatories to the Applicants. These documentary evidences have not been controverted by the Resolution Professional or Respondent Nos. 3 to 5 or the Respondent No.6. The Resolution Professional has raised an issue under Para 7 of his reply filed on behalf of the Corporate Debtor that the provisions of section 58A of the Companies Act, 1956 r/w the Companies (Acceptance of Deposit) Rules, 1975, have not been complied with by the Applicants, whereas the said provisions along with the relevant Rule, were to be complied with by the Corporate Debtor and not by the Applicants. Even if it is assumed that the relevant provisions along with the Rule have not been complied with, the same shall not render the transactions as null and void. Because, the non-compliance of the provisions of the Companies Act and the relevant Rules entail punishment for the Officers of the Corporate Debtor, who are in default but section 58A of the Companies Act, 1956 or even the provisions of sections 73 to 76 of the Companies Act, 2013, do not prohibit the return of the loans/advances taken from the Applicants by the Corporate Debtor. The members of the CoCs cannot dispute the claim of the Applicants in any manner as there is no provisions in the I&B Code, 2016, empowering the CoCs to decide the claim of the co-creditors. The Corporate Debtor or Resolution Professional cannot take the advantage of its/his own wrongs. Miscellaneous Application is allowed and the claim of the Applicants stands admitted to the tune of ₹ 1,50,94,000/-; the representative of the Applicants is permitted to attend the CoCs and exercise rights attached thereto. Therefore, the Resolution Professional is directed to enter the names of the Applicants in the list of the Financial Creditors, allow their representative to participate in the CoC and exercise the right attached thereto without making any delay, and file the status report before the Registry through an Affidavit within 3 days from the date of pronouncement of this Order.
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