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2022 (2) TMI 418 - Tri - Insolvency and BankruptcyFinancial Debt or not - amount claimed under the Promissory Note - whether the Board of Director of Corporate Debtor was authorized to borrow the loan from the applicant or note? - HELD THAT:- A bare perusal of the provision of Section 5 sub-Section 8 of IBC, 2016, any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument comes under the definition of Financial Debt. On conjoint reading of the two provisions of Section 4 and section 13 of the Negotiable Instrument Act, show that Promissory note comes under category of any of similar instrument. Hence the Promissory Notes comes under the definition of Financial Debt under Section 5 sub-Section 8(5) of the IBC, 2016, hence, we are of the considered view that the Promissory note comes under the definition of Financial Debt. Non-submission of the Board Resolution regarding the authorization to borrow the loan - HELD THAT:- Admittedly, that has not been placed by the applicant but the applicant has referred to page 57 Annexure-A7 which shows that the confirmation of amount from 01st April 2019 to 31st March, 2020 is made by the authorized signatory of the Corporate Debtor and as per the books of account, the balance is of ₹ 1,77,46,750/- as on 31st March, 2020 - for the purpose of issuance of summons under Section 7, the Adjudicating Authority requires to establish this fact that whether an amount is a Financial Debt and is their any default in payment of the Financial Debt? Since the applicant has convinced the Bench that the Promissory note comes under the definition of Financial Debt, and there is default in payment of debt, therefore, we think it proper to issue a notice upon the Respondent - Notice be issued upon the Respondent by all modes including email id of the respondent, affidavit of service be filed within a week from today. List the matter on 11.03.2022.
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