TMI Blog2018 (12) TMI 1669X X X X Extracts X X X X X X X X Extracts X X X X ..... fessional, if may, by order, admit such application; or (b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application. In this case, the Financial Creditor produced on record the statement of loan account of the Corporate Debtor maintained by them. A perusal of them proves that the loan was given to the Corporate Debtor and it has not been repaid. In fact, there is no dispute about this fact. It is the only say of the Corporate Debtor that since no interest is liable to be paid on the amount, it cannot be termed as the financial debt. It is now settled law that while considering application under section 7 of l B Code, the authority has to record finding only on two aspects - (i) whether there is a debt and (ii) whether there is a default of the debt. In this case, the Financial Creditor has proved both the facts. Application admitted. - CP (IB) No. 44/KB/2018 - - - Dated:- 13-12-2018 - MR MADAN B. GOSAVI, MEMBER (JUDICIAL) For The Applicant : Ms. Lapita Banerjee, S.K. Kanodia and S.G. Mookherjee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot maintainable. It is further contended that the applicant has not attached any financial statement to prove the existence of financial debt. There were so many irregularities caused in filing the application and not corrected. Hence, the application is not maintainable. 5. I heard the Ld. Counsel for the Financial Creditor and the Ld. Pr.CA for the Corporate Debtor at length. Ld. Counsel for the Financial Creditor pointed out that although the loan was advanced in the year 2004 but it was not repaid in time. The Corporate Debtor in their financial statement for the period ending March, 2015 have admitted this debt. This petition is filed within three years thereafter and it is within time. 6. Ld. Counsel for the Financial Creditor further submitted that there is no dispute to the fact that loan of ₹ 24 lakhs was advanced and further advances were also given to the Corporate Debtor. Since the Corporate Debtor did not repay the loan as agreed, this CIRP is filed. 7. Ld. Pr.CA submitted that there is nothing on record to show that the Corporate Debtor paid any amount towards interest to the Financial Creditor. There was no transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which is disbursed against the consideration for the time value of money and includes . If this definition is read carefully, it cannot be said that the financial debt is the debt which carries the interest component only. Any other consideration for time value of money could be termed as the financial debt. 13. In this case, the Financial Creditor stated that the Corporate Debtor disbursed in their favour 60,000 equity shares amounting to ₹ 12 lakhs and they were adjusted towards the interest. I do not find any reason to hold otherwise than that the loan advanced to the Corporate Debtor is the financial debt. 14. It is seen from the record that the Corporate Debtor in their financial statement admitted this debt in following words, the company has taken a second loan from one party listed in the Registry maintained under section 189 of the Act amounting to ₹ 24 lakhs from Indian Base Metals Co. Ltd. (Financial Creditor). This debt is admitted on 31.03.2015 and this petition is filed well within time, i.e. in January, 2018. In view of the facts on record, I uphold the money advanced by the Financial Creditor to the Corporate Debtor is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) The recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate debtor. (iv) The supply of essential goods or services to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during the moratorium period. (v) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (vi) The order of moratorium shall affect th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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