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2021 (5) TMI 116 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - Financial Creditors - Finance Lease - existence of debt and dispute or not - HELD THAT:- On careful examination of the relevant clauses of the Master Rental Agreement (MRA), the transaction takes the form of financial debt in respect of which there is an amount of the liability in respect of the lease which is deemed as a 'financial lease' under the Accounting Standards (AS) - ICAI. Further, as per Section 5(8)(e) a 'financial debt' includes receivables sold or discounted other than any receivables sold on non-recourse basis - the amount due to the Applicant Bank constitutes a 'financial debt' which was disbursed to the successor for the time value of money. The contention of the Respondent rejecting the claim of the Applicant Bank do not hold good in view of the reference to the nature of rental agreement which is a financial lease agreement in substance then in form, which is capable of being assigned as per the Clause 26 of the agreement and consequent upon purchase of the rent receivable contained therein the Applicant Bank has acquired the right of the financial creditor as succession in interest - The rejection of the claim by the Respondent in respect of Term Loan II is hereby set aside and since the claim of the Applicant Bank in relation to Term Loan II qualifies to be a 'financial debt', it is directed that the Respondent to admit the claim of the Applicant Bank in relation to Term Loan II and treat the Applicant Bank as a 'Financial Creditor' in terms of the provisions of IBC, 2016. Application allowed.
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