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2020 (2) TMI 633 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - HELD THAT:- Although the Corporate Debtor is trying to claim that the amount received by the Corporate Debtor from the Financial Creditor was only an advance for future supply of goods, and for the satisfaction of the Financial Creditor, the Agreement dated 4th April, 2017 and Promissory Notes were executed, we are unable to travel beyond the documents executed between the parties. The "Share Pledge/Financial Facility Agreement" dated 4th April, 2017 clearly referred to the Corporate Debtor as "borrower" and to the Financial Creditor as "lender". There is no substance in the argument of the Appellant that the subsequent Promissory Note cannot be looked into for considering the relationship. When the Financial Creditor gave advance to keep the Corporate Debtor running, to ensure that its raw material becomes available to the Financial Creditor, it was clearly a case of borrowing/lending for time value of money for the loan which the Financial Creditor was advancing. On the basis of the amounts advanced in 2016 - 2017 itself, considering the fact that the Corporate Debtor has not paid the amounts claimed, which are clearly more than ₹ 1 Lakh, we find there is debt and default and that no error could be said to be there in the Impugned Order admitting the Section 7 proceedings filed by the Financial Creditor - Respondent No.1 - Appeal dismissed.
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