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2018 (6) TMI 947 - AT - Companies LawCorporate Insolvency Resolution Process - ‘debt’ and ‘default’ on the part of the ‘Corporate Debtor’ - Held that:- It is not in dispute that the Appellant- (‘Corporate Debtor’) was developing an office complex by the name of Q-City Hyderabad. In the process of developing such office complex on 23rd October, 2017, the Respondent- (‘Financial Creditor’) acquired the majority of the shareholding of the Appellant- (‘Corporate Debtor’) for a total consideration of ₹ 162.73 Crores. Subsequently, in between 2007-2010, the ‘Financial Creditor’ granted interest free unsecured loan of ₹ 62.90 Crores to the Appellant- (‘Corporate Debtor’) for development of ‘Q-City’. Grant of loan and to get benefit of development is object of the Respondent- (‘Financial Creditor’), as apparent from their ‘Memorandum of Association’. Thus, we find that there is a ‘disbursement’ made by the Respondent- (‘Financial Creditor’) against the ‘consideration for the time value of money’. The investment was made to derive benefit of development of ‘Q-City’, which is the consideration for time value of money. We find that the Respondent- (‘Financial Creditor’) come within the meaning of ‘Financial Creditor’ and is eligible to file an application under Section 7, there being a ‘debt’ and ‘default’ on the part of the ‘Corporate Debtor’.
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