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2020 (8) TMI 457 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - default has been committed by dishonour of cheques - privity of contract - HELD THAT:- tHE father and son have been working in tandem to defraud the Creditors and raising the false plea of there being no privity of contract between the ‘Corporate Debtor’ and the ‘Financial Creditors’ while being fully conscious of the fact that the financial assistance was obtained for promoting the business of the ‘Corporate Debtor’. While Mr. P.C. Pantulu acted as authorised representative of the borrower- ‘Cybermate Infotek Limited’, son Mr. P. Chandra Shekhar (Appellant), Director of the ‘Corporate Debtor’, acted as Guarantor. The Settlement deed dated 7th September, 2016 executed between the lenders including the ‘Financial Creditors’ and the aforestated father and son duo is in furtherance of loan extended by the ‘Financial Creditors’ to the ‘Corporate Debtor’ towards discharge of liability of the ‘Corporate Debtor’. The Letter dated 1st February, 2017 issued by the ‘Corporate Debtor’ to Respondent No.2 is also to the same effect. The Settlement Agreement dated 7th September, 2016 and the letter dated 1st February, 2017 admitting the debt on behalf of the ‘Corporate Debtor’ confirm these conclusions. It is, therefore, of no avail for the Appellant to contend on behalf of the ‘Corporate Debtor’ that the debt, liability in respect whereof has been admitted and acknowledged and default has been committed by dishonour of cheques, was not payable in law or in fact. The issue raised and the arguments advanced on behalf of the Appellant being devoid of merit are repelled - Appeal dismissed.
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