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2022 (12) TMI 352 - AT - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial creditors - existence of debt and dispute or not - HELD THAT:- On looking into the Letter of Intent which has been relied by the Counsel for the Appellant, Clause 1 to 7, it is clear that the agreement which was sought to be entered between the parties was for premises for the use of the Appellant and the LoI contemplated execution of the lease deed on the rent basis. The amount of Rs.1.2 Crore was advance by the Appellant in pursuance of the LoI which is clear from Clause 7 of the LoI. There can be no quarrel to the preposition laid down by the Hon’ble Supreme Court in Orator Marketing Pvt. Ltd. [2021 (8) TMI 314 - SUPREME COURT]. The use of the word ‘if any’ clearly makes that it is not essential for all financial debt to be with interest. However, the essential condition which is required to be fulfilled for a debt to be a financial debt is “disbursement for time value of money” which has to be fulfilled for all transactions referred to in clauses (a) to (f) in sub-section (8) of Section 5 of the Code. The amount advance of Rs.1.2 Crore cannot be held to be financial debt and no error has been committed by the Adjudicating Authority in rejecting the Section 7 Application - the Appellant in view of the facts cannot invoke the provisions of the IBC but it is always open for the Appellant to take recourse of the law and remedy as available in law for his debt, if any. Appeal dismissed.
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