Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 123 - AT - Insolvency and BankruptcyScope of the I&B Code - initiation of CIRP - Financial Debt - Converion of Debt into Capital - Corporate Debtor failed to make repayment of its debt - Financial Creditor or not - existence of debt and dispute or not - HELD THAT:- As seen from the impugned order of the Adjudicating Authority had observed that the investment is not a ‘Financial Debt’. The Adjudicating Authority had also touched upon the subject of violation of Advocates Act, 1961 and the Bar Council of India Rules for professional conduct and ethics for Lawyers and is not happy with the Advocate becoming the ‘Power of Attorney Holder’ and affirming Affidavit on behalf of the Appellant - This Tribunal has noticed the submissions advanced on both the sides meticulously and is of the view that the Application under Section 7 of the I&B Code, 2016 cannot be rejected on the ground that the same set was filed by the ‘Power of Attorney Holder’. The delay has also been condoned by this Appellant Tribunal vide its order dated 24.01.2020. The Appellant case is that she and her late husband has invested huge amount in the Corporate Debtor, and she is a senior citizen. The Corporate Debtor has failed to provide audited profit loss account for the years 2013-14 till date to the Appellant, it seems that the Corporate Debtor is suffering from several irregularities. However, the provisions of Section 7 of the I&B Code, 2016 provides for initiation of the CIRP by ‘Financial Creditor; only and that too, if there is a ‘Debt’ and ‘Default’. Once the ‘Debt’ is converted into “Capital” it cannot be termed as ‘Financial Debt’ and the Appellant cannot be described as ‘Financial Creditor’. The grievance of the Appellant does not fall under the provision of ‘Insolvency and Bankruptcy Code, 2016’ - Appeal dismissed.
|