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2021 (5) TMI 314 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - High Seas Sale - HELD THAT:- It is crystal clear that projecting this High Seas Sale Agreement as the source document by the Applicant their claim as Financial Debt and the Applicant claiming themselves to be the Financial Creditor is misconceived and we are not inclined to treat this transaction as Financial Debt. The Corporate Debtor have obtained a Letter of Credit for the payment of the said amount opened in Corporation Bank which is said to have been honoured. Since there appears to have been a dispute between the parties they referred the matter to the sole Arbitrator and an award had been passed in favour of the Applicant which is appealed before the Hon'ble High Court of Bombay and the appeal was dismissed and some email communication is seen to have been exchanged between the parties with a view to settle the claim - As may be seen from the nature and characteristics of the transaction governed by the said High Seas Sale Agreement such transaction cannot be re-christened as Financial Debt. As evidenced by the source document namely High Seas Sale Agreement, written submissions and pleadings, the Applicant cannot be treated as Financial Creditor and there is no Financial Debt, this application is liable to be dismissed. Application dismissed.
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