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2019 (5) TMI 388 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - corporate debtor - sub-section (1) of Section 60 of the Code - appointment of an Interim Resolution Professional - It is the case of the respondent that there is no Financial Debt as defined under Section 5(8) of the IBC, 2016 as there is no consideration for the time value of the money and that the Applicant has failed to prove the same. HELD THAT:- The procedure in relation to the Initiation of Corporate Insolvency Resolution Process by the “Financial Creditor” is delineated under Section 7 of the Code, wherein only “Financial Creditor” / “Financial Creditors” can file an application. As per Section 7(1) of the Code an application could be maintained by a Financial Creditor either by itself or jointly with other Financial Creditors - The expressions “Financial Creditor” and “Financial debt” have been defined in Section 5(7) and 5(8) of the Code and precisely “Financial debt” is a debt along with interest, if any, which is disbursed against the consideration for time value of money. In the present case it is reiterated that the applicant had sanctioned and disbursed the loan amount from time to time recoverable with applicable interest by entering into loan agreements with the corporate debtor. The corporate debtor had borrowed the credit facilities against payment of interest as agreed between the parties. The loan was disbursed against the consideration for time value of money with a clear commercial effect of borrowing. Moreover, the debt claimed in the present application includes both the component of outstanding principal and interest - In that view of the matter not only the present claim comes within the purview of ‘Financial Debt’ but also the applicant can clearly be termed as ‘Financial Creditor’ so as to prefer the present application under Section 7 of the Code. In terms of Section 7(5)(a) of the Code, the present application is admitted - moratorium in terms of Section 14 of the Code declared.
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