TMI Blog2021 (1) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... said transaction was not a commercial transaction but was financial in nature, the Commercial Court could not have adjudicated upon the same. Therefore, it is obvious that the claim made by the Applicant herein pertains to a commercial transaction between the parties - It is an admitted fact that pursuant to the agreement in the form of purchase order the Applicant has paid the money as an advance for supply of goods and not as a disbursement of debt for time value of money. In the Purchase Order between the Appellant and the Respondent, nowhere it is mentioned that the amount paid by the Appellant to the Respondent will be repayable by the Respondent along with interest over a period of time in a single or series of payments in future. The Appellant has not disbursed any money against the consideration for the time value and hold that the claim of the Appellant is not a Financial Debt within the meaning of section 5(8) of the Code - this Adjudicating Authority does not find any infirmity in the decision of the RP. Application dismissed. - IA No. 66 of 2020, CP (IB) No. 562/7/HDB/2018 - - - Dated:- 6-7-2020 - K. Anantha Padmanabha Swamy, Judicial Member And Dr. Binod Kuma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the said Court on 14-6-2016 has passed a decree in favour of the Applicant wherein an amount of ₹ 1,68,99,220/- along with future interest @6% p.a. on a principal sum of ₹ 1,62,19,375/- from the date of filing of the suit till the realisation be paid to the Applicant herein. g. That the sec.7 application, was filed by SBI against the Corporate Debtor (M/s. Sri Lakshmikantha Spinners Ltd) and the same was admitted for CIRP vide order dated 1-8-2019 in CP (IB) No.562/7/HDB/2018. h. That Applicant has filed its claim with IRP, appointed in above mentioned CIRP in Form C on 21-8-2019 and the IRP vide its email dated 19-9-2019 informed the Applicant that the nature of transaction between the parties are of buyer and the seller and hence the claim of the Applicant was considered as the Operational debt and accordingly a claim application in Form B be submitted. i. The Applicant Company has made the advance payment against the said invoices raised by the Corporate Debtor and had received the supply of the material in part. In the instant case even though the relationship between the Applicant Company and the Corporate Debtor is of the buyer and seller, the amount me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount paid by the applicant company is pursuant the purchase agreement which is a prerequisite under the provisions of the section 5(8)(f) of the I B Code, 2016. 3. Counsel for the Respondent filed counter inter alia stating as under:- a. That the Applicant has been aggrieved by the decision of the Respondent/Resolution Professional not to consider the claim of the Applicant as one of the Financial Creditor but as one of the other Creditors and therefore filed the above Application by trying to project as if applicant is a Financial Creditor by trying to take shelter under the provisions of 5(8)(f), 5(21) 5(22) of the I B Code, 2016 and is trying to misinterpret the said provisions of law, and thereby is trying to gain weight to its allegations, which are legally unsustainable and as such the present Application is liable to be dismissed. b. That in fact, in order to support his contention that the Applicant is not a financial creditor, the Respondent/RP is relying upon the submissions made by the Applicant itself. It is submitted that, a perusal of the contentions as put forth by the Applicant would itself reveal that, the Applicant is a private limited company which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards Debt but had given the same towards purchase of material. So when the transaction itself is not in the nature of a debt, the said transaction will not attract section 5(8) of IBC and as such the applicant cannot be considered to be a Financial Creditor. e. That even a perusal of the Annexures relied upon by the Applicant itself more particularly the Judgment passed by the Hon'ble Commercial Court would only go to establish that the Corporate Debtor had received amounts with an assurance to supply material and since the Corporate Debtor had not supplied the material, the Hon'ble Commercial Court after considering the pleadings had decreed the Suit. Even in the said Suit also the Applicant herein has never pleaded that it had lent the money towards debt but had only contended that it intended to purchase material and as such the relation between the Applicant and Corporate Debtor could only be considered as Operational Creditor-Corporate Debtor transaction and nothing else. What has to be seen in case of Judgments passed by Civil Courts also is that, whether the base transaction is that of a loan transaction or else a transaction involving procurement of goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications relating to a commercial dispute of a Specified Value arising out of the entire territory of the State over which it has been vested territorial jurisdiction. 10. Further, Commercial Dispute is defined in the Commercial Courts Act, 2015 in section 2(c) as under: (c) commercial dispute means a dispute arising out of- (i) ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, including enforcement and interpretation of such documents; (ii) export or import of merchandise or services; (iii) issues relating to admiralty and maritime law; (iv) transactions relating to aircraft, aircraft engines, aircraft equipment and helicopters, including sales, leasing and financing of the same; (v) carriage of goods; (vi) construction and infrastructure contracts, including tenders; (vii) agreements relating to immovable property used exclusively in trade or commerce; (viii) franchising agreements; (ix) distribution and licensing agreements; (x) management and consultancy agreements; (xi) joint venture agreements; (xii) shareholders agreements; (xiii) subscription and investment agreements pertaining to the services ind ..... 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