TMI Blog2020 (7) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ntemplated under section 3(12) of the I B Code, 2016. In the absence of any 'Financial Contract' between the parties, this Authority is not able to ascertain the default on the part of the Corporate Debtor - Application dismissed. - IBA/203/IB/2019 - - - Dated:- 10-3-2020 - R. Varadharajan, Judicial Member And Anil Kumar B., Technical Member For the Applicant : Vikram U. Jain, Adv. For the Respondent : Avdhesh Bairwa, Adv. ORDER R. VARADHARAJAN, JUDICIAL MEMBER 1. This Application has been filed under section 7 of the Insolvency Bankruptcy Code, 2016 ( hereinafter referred to as IBC, 2016 ) by Priyanka Kumari Jain (hereinafter called as Financial Creditor ) for the purpose of initiating the Corporate Insolvency Resolution Process (CIRP) against M/s. Spencer's Travel Services Ltd. (hereinafter called as Corporate Debtor ). 2. Part - I of the Application discloses the fact that the Applicant is an individual. Part- II of the Application gives all the particulars of the Corporate Debtor from which it is evident that the Corporate Debtor is a Limited Company with CIN:U63040TN2001PLC047809 which was incorporated on 26-9-2001 and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial Creditor submitted that as a security for repayment, the Corporate Debtor issued a Cheque for a sum of ₹ 25,00,000/- and a Promissory Note, on the date of disbursement of the loan amount thereby acknowledging the existence of a debt due and payable to the Financial Creditor. 7. It is submitted by the Learned Counsel for the Financial Creditor that as per the understanding between the parties, the amounts were partly repaid by the Corporate Debtor in equal monthly installments of ₹ 2,50,000/- for a period from 5 months from March to July, 2016. However, no further payments were forthcoming from the Corporate Debtor from August, 2016, onwards. Under the said circumstance, it is stated that since even after repeated requests, the Corporate Debtor failed to pay the remaining installments, the Financial Creditor was constrained to encash the Cheque issued by the Corporate Debtor which got bounced as payment stopped by drawer when presented to the Bank. In spite of repeated requests made by the Financial Creditor, the Corporate Debtor failed to repay the amounts due to the Financial Creditor. Hence, this Application. 8. The Corporate Debtor has filed a detaile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporate Debtor had never approached the Financial Creditor and only M/s. Jineswar Infraventures (P.) Ltd. approached the Corporate Debtor and agreed to finance the Corporate Debtor through consortium of financiers. It is further contended that the Financial Creditor was one of the financers under the consortium of financiers of M/s. Jineswar Infraventures (P.) Ltd. from whom the Corporate Debtor availed the loan of ₹ 6,05,00,000/- and repaid the same. The Corporate Debtor denied any loan arrangement with Financial Creditor and submission of Cheque or Promissory Note acknowledging the debt in favour of the Financial Creditor. 13. It is averred that the Corporate Debtor gave several blank Cheques, Promissory Notes and blank papers to M/s. Jineswar Infraventures (P.) Ltd., who in turn colluded with the present Financial Creditor and misused the documents of the Corporate Debtor given to the other consortium of financer as security. In this regard, the Corporate Debtor has already filed a Civil Suit in OS No. 4759/2016 to return the loan documents including the Cheques given as security and to restrain the Defendants therein (including the Financial Creditor) from misusin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all submit claim with proof to the interim resolution professional in electronic form in Form C of the Schedule: Provided that such person may submit supplementary documents or clarifications in support of the claim before the constitution of the committee. (2) The existence of debt due to the financial creditor may be proved on the basis of- (a) the records available with an information utility, if any; or (b) other relevant documents, including - (i) a financial contract supported by financial statements as evidence of the debt; (ii) a record evidencing that the amounts committed by the financial creditor to the corporate debtor under a facility has been drawn by the corporate debtor; (iii) financial statements showing that the debt has not been paid; or (iv) an order of a court or tribunal that has adjudicated upon the non-payment of a debt, if any. The term 'Financial Contract' is defined in clause (d) of sub-section 1 of AAA Rules, 2016; (d) financial contract means a contract between a corporate debtor and a financial creditor setting out the terms of the financial debt, including the tenure of the debt, interest payable and date of rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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