Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (10) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 384 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- The transfer of the money from the petitioner to the respondent is evidenced by the Banking record. Further, its receipt is not denied by the respondents. They only seek to resist it on the point of limitation and the fact that no formal agreement was executed categorizing it as a "Loan". This Bench is of the opinion that there need not be an agreement in writing to ascertain a financial transaction. The liability to pay interest, and if so, at what rate, may be debatable in the absence of a written contract, but a financial claim may be one with or without interest. The Corporate Debtor has acknowledged the same as a borrowing in their financial statements. This Bench is of the view that the objection raised by the respondents with respect to absence of a loan agreement is not fatal to the case of the financial creditor as the transaction itself is admitted. This bench is of the view that, the objections raised by the respondents with respect to absence of loan agreement is not fatal to the case of Financial Creditor since the transaction has not been denied by the Respondent. Further, this bench finds merit in the arguments made by the Ld. Senior Counsel appearing for the petitioner on the issue of limitation and commission of default. The law on this point is very clear that in matters where the term of the loan has not been fixed, the same is payable on Demand and the limitation shall commence when the loanee fails to respond, giving rise to a cause of action. The Demand in this case was made on dated 07.02.2019 and therefore, this petition which has been filed on 28.03.2019 is within the period of limitation - Petition admitted.
|