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2018 (1) TMI 443 - AT - Insolvency and BankruptcyApplication under Sections 433 and 434 of the Companies Act, 1956 for winding been treated as an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 - Held that:- In the present case, the respondent has failed to show that the amount of loan treated to have been given to the Corporate Debtor were disbursed against the consideration for the time value of money. In absence of any such evidence on record to suggest that the amount was disbursed against the consideration for the time value of money and was borrowed by the Corporate Debtor against the payment of interest, we hold that the respondent – M/s. Visa Drugs and Pharmaceuticals do not come within the meaning of ‘financial creditor’. The Adjudicating Authority having failed to notice the facts, we have no other option but to set aside the impugned orders dated 4th September and 18th September, 2017. In effect, order(s) passed by the Adjudicating Authority appointing ‘Resolution Professional’ declaring moratorium, freezing of account and all other order(s) passed by the Adjudicating Authority pursuant to impugned order and action taken by the ‘Resolution Professional’, including the advertisement published in the newspaper calling for applications all such orders and actions are declared illegal and are set aside. The application preferred by Respondent under Section 433 and 434 stands abated. The Adjudicating Authority will now close the proceeding. The Corporate Debtor is released from all the rigour of law and is allowed to function independently through its Board of Directors from immediate effect.
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