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2021 (4) TMI 402 - AT - Insolvency and BankruptcyMaintainability of Application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - amounts advanced towards purchase of shares of the ‘Appellant’/’Company’ - case of appellant is that ‘Respondent’/‘Petitioner’ is neither an ‘Operational Creditor’ nor a ‘Financial Creditor’ and further that there is no ‘debt’ and that the ‘Respondent’ is not in ‘Default’ under the Code - time limitation - HELD THAT:- Keeping in mind that the ‘Appellant’/ ‘Corporate Debtor’ acknowledged the debt of ‘Respondent’/ ‘Financial Creditor’ on 28.11.2018, it is held by this ‘Tribunal’ that the application filed by the ‘Respondent’/ ‘Applicant’/ ‘Financial Creditor’ is within the limitation period. The ‘Adjudicating Authority’ (National Company Law Tribunal, Kochi Bench, Kerala) on 25.8.2020 came to the conclusion that the present debt arose out of the ‘Share Purchase Agreement’ dated 21.11.2012 and that the said amount was a ‘debt’ disbursed against the consideration for advance payment as per the agreement and hence was covered within the definition of ‘financial Debt’ and that the ‘Respondent’/ ‘Applicant’ would be treated as ‘Financial Creditors’ and resultantly admitted the Section 7 Application of the ‘Respondent’/ ‘Financial Creditor’/ ‘Applicant’ for initiation of CIRP - It is to be mentioned that an ‘inherent power’ of the ‘Tribunal’ has its gross root in necessity and the said power can be exercised by a ‘Tribunal’ based on the rudimentary principle that an ‘act of Court shall prejudice no person’. Further, to meet the ends of justice an ‘inherent power’ of a ‘Tribunal’ being ‘Co-extensive with need’ can be exercised to render justice to the litigants. Undoubtedly, the Adjudicating Authority (National Company Law Tribunal, Kochi Bench, Kerala) had rightly allowed application on 28.01.2021 (filed under Rule 11 of National Company Law Tribunal Rules, 2016 by the ‘Respondent’/ ‘Financial Creditor’) of course, based on proper material before it and the same requires no interference in the hands of this ‘Appellate Tribunal’ sitting in ‘Appeal’. Looking at from any angle, the ‘Appeal’ sans merits. Appeal dismissed.
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