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2021 (8) TMI 944 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial creditors - inter-Corporate Loan - absence of proper documents - suppression of material facts of filing of a Title Suit against the Financial Creditor before the City Civil Court - HELD THAT:- First of all, it is not clear as to how a request for inter-corporate loan was made by the Corporate Debtor to the Financial Creditor. There is no document placed on record by the Financial Creditor indicating any demand or requests made on behalf of the Corporate Debtor. There is no agreement to indicate the rate of interest being claimed by the Financial Creditor @ 9% per annum. In the absence of any such document, it is very difficult to put the payment of ₹ 25,00,000/- sent through RTGS by the Financial Creditor to the Corporate Debtor, in the category of financial debt. What is more surprisingly is that the Financial Creditor did not write to the Corporate Debtor about the dishonouring of its cheque for ₹ 25,00,000/- even after the cheque was returned by the Bank till the date of filing of this application on 27th December, 2018 which speaks volumes about the whole issue between the parties. First of all, there was no reason to keep the cheque pending till it becomes stale and once it has been returned by the Bank, the natural conduct of a creditor is to at least send an email or letter informing the Corporate Debtor to make the payment due from it to the Financial Creditor, instead of straightway rushing to this Adjudicating Authority by way of an application under section 7 of the Code, which is the harshest step for any person to take particularly with a person who is stated to be a friend as stated in the application and the loan was also allegedly given as friendly loan. This is not a fit case for admission of the application or for initiation of CIRP in respect of the Corporate Debtor. The application has so many infirmities, due to which the application of the Financial Creditor is to be rejected. Application dismissed.
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