Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 116 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Debt or not - Financial creditors or not - liability of respondent to repay the deposit along with interest under Sections 73 and 74 of the Companies Act, 2013, and interest was to be paid at the rate of 18% as per Rule 17 of the Companies (Acceptance of Deposits) Rules 2014 - HELD THAT:- It is clear from definition given in Section 3(11) that debt is a much bigger set of financial liabilities, whereas “financial debt” is only a subset of the overall set of debt. Moreover, Section 5(8) defines ‘financial debt’ to mean a debt along with interest which is disbursed against the consideration for the time value of money, where money should necessarily be borrowed against the condition of time value of money. Under Section 5(7), ‘financial creditor’ is a person to whom ‘financial debt’ is owed or to whom such debt has been legally assigned or transferred to - The Appellant has nowhere been able to show any document that there was a financial contract to borrow by the Corporate Debtor by the Respondent – Corporate Debtor, in which refund of principal amount alongwith interest was included explicitly. We are, therefore, not persuaded by the contention of the Appellant that there was a time value of money attached with the deposited which was established through a prior contract before the principal amount was deposited for purchasing of shares by the Appellant with the Respondent. Moreover, the amount deposited should be a credit to be used by the Respondent-Corporate Debtor for the growth of his enterprise. The Appellant has not given any document or argument to show that the amount deposited by him was to be used by the Respondent for establishing or running his business. The appeal, therefore, does not need consideration and is dismissed at the stage of admission.
|