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2019 (11) TMI 593 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor defaulted in making repayment of loan amount - existence of debt and dispute or not - Appellant submits that the Corporate Debtor deducted TDS on the interest paid by the Corporate Debtor while returning the loan which is sufficient to show that there was financial debt - HELD THAT:- Merely pointing out that TDS was deducted would not be sufficient to conclude that there was financial debt. TDS can be deducted for various reasons. As regard relying on Section 10 of the Contract Act, 1872, in our view IBC is a complete code in itself. Section 238 of IBC has overriding effect on provisions inconsistent with IBC. The ‘Financial contract’ is defined in “Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016” Rule 3(1)(d) requires setting out the terms of the financial debt including tenure etc. - It is found that Appellant has failed to show any record showing financial debt to be there. As such, there are no fault in the impugned order while rejecting Section 7 application. The part of impugned order of the Adjudicating Authority as regards the imposing of a fine of ₹ 1 lakh relying on Section 75 of IBC is set aside - Rest part of the impugned order does not call for interference - appeal allowed in part.
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