TMI Blog2020 (3) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... India Act, 1934 and is a Non-Banking Financial Company 'not authorised to accept public deposit' come within the meaning of 'Financial Service Provider'. It is evident that all 'non-banking financial institution' has been excluded from the definition of the 'Corporate Person', except those which are 'financial service provider'. The Appellant has failed to show any document that it is actually performing the business of 'financial service provider', as defined under the 'I B Code'. On the other hand, the Respondents have shown that it is not actually performing the business of 'financial service provider' and thereby does not come within the meaning of 'financial service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 'I B Code'. The 'Resolution Professional' and the suspended Board of Directors were directed to co-operate with the 'Resolution Professional'. 3. However, the Directors/Promoters (suspended Board of Directors) of the 'Corporate Debtor' did not comply with the direction of the Adjudicating Authority nor handed over the assets and records of the 'Corporate Debtor'. 4. It was in this background, the 'Resolution Professional' filed two Interlocutory Application Nos. 430 605/KB/2018 for violation of section 17 of the 'I B Code' and Moratorium declared under section 14 of the 'I B Code' by the 'Resolution Professional' and the Directors of the 'Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refunded to the account of the corporate debtor. Being satisfied that transfer of fund by the corporate debtor is illegal the interim relief as sought for is to be allowed in the case in hand. Accordingly, interim relief as prayed for is allowed upon the following among orders: (i) Creditors named in the Annexure R-6 list (except employees and auditor) are hereby directed to refund the money to the account of the corporate debtor which have been received by them within 15 days of receipt of the order, failing which the Resolution Professional is directed to take immediate steps to get it refunded from them so as to continue with the CIRP process without any interruption. (ii) The RP is hereby directed to demand back the fund from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r companies' and as one of its incidental or ancillary objects provides 'to borrow or raise or secure the payment of money from any Bank or Banks or any financial institution or any other persons for the purpose of the Company's main business'. 11. It was submitted that the transaction on the basis of which the 'Corporate Insolvency Resolution Process' has been initiated against the 'Corporate Debtor' is a loan taken by it from 'Olympia Credits Mercantile Private Limited'. 12. One of the other Objects of the 'Memorandum of Association of the alleged 'Corporate Debtor' states 'to provide financial service, advisory and counselling services and facilities of every description cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention for modification of the earlier order passed by this Appellate Tribunal. The Respondents have disputed the claim made by the Appellant that the 'Corporate Debtor' is a 'financial service provider'. 18. The Appellant has not filed copy of the order of admission dated 15th January, 2018 by which the application under section 7 was admitted. The Adjudicating Authority passed the said order of admission after hearing the parties including the 'Corporate Debtor'- 'Prithvi Finvest Company Pvt. Ltd.' 19. Before the Adjudicating Authority, at the time of admission, no such plea was taken by the 'Corporate Debtor'. 20. The Appellant has not filed 'Certificate of Registration' issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act, 2013 (18 of 2013), a limited liability partnership, as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), or any other person incorporated with limited liability under any law for the time being in force but shall not include any financial service provider. 25. 'Financial Institution' as defined under section 3(14) (a) (b) of the 'I B Code', as quoted below: 3. Definitions . (14) financial institution means─ (a) a scheduled bank; (b) financial institution as defined in section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) .. 26. From the aforesaid provisions, it is evident that all 'non-banking financial insti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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