TaxTMI 
TaxTMI 
2021 (3) TMI 978
X X X X Extracts X X X X
X X X X Extracts X X X X
....e debtor is due and liable to pay an amount of Rs. 13,26,49,938/-(Rupees Thirteen Crores Twenty Six Lacs Forty Nine Thousand Nine Hundred Thirty Eight Only) consisting of Principal 10,11,11,470/-(Rupees Ten Crores Eleven Lacs Eleven Thousand Four Hundred Seventy Only) and interest @12% from 1st October, 2016 to 31st March, 2018 amounting to Rs. 1,82,00,065/ - and interest @12% per annum from 1st April 2018 to 31st October, 2019 amounting to Rs. 1,33,38,404/- as on 01.11.2019. Hence the petition is filed under Section 7 of Insolvency and Bankruptcy Code, 2016, Read with Rule 4 of Insolvency& Bankruptcy (Application to the Adjudicating Authority) Rules, 2016 seeking commencement of Corporate Insolvency Resolution Proceedings CIRP against the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... had also effected. The financial creditor was forced to pay extra interest on Rs. 10,11,11,470/- which is huge burden on the company since it incurred extra expenditure of Rs. 2.00 crores on the Company. e. It is averred that due to the financial burden on the financial creditor, he put severe pressure on the corporate debtor for releasing the funds along with interest. On 10th March, 2018 both the parties agreed and entered into a loan agreement on the terms and conditions to return the money in 12 equated monthly installments from 1st April, 2018 and in case of any default in payment of the installments, interest will be charged @12% p.a from the due date i.e 1st October, 2016 till the payment of that installment. f. It is aver....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the installment. (v) It is averred that corporate debtor is not in a position to pay the amounts, and approached the financial creditor multiple times and requested for waiver of the interest part. Further, corporate debtor requested the financial creditor to take back its material supplied. (vi) However, financial creditor neither considered the waiver of the interest amounts nor to take back its material supplied and further approached the Tribunal by filing the present petition. (vii) It is further averred the application is not maintainable sine the transaction between the financial creditor and corporate debtor is not financial transaction but an operational transaction leading to an operational debt. Thereby, the financial cr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Thus the learned Counsel for the financial creditor filed the petition is therefore liable to be admitted as the corporate debtor committed default of debt. 6. On the other hand it is the case of corporate debtor that Corporate debtor is facing numerous financial difficulties and was unable to pay the debt owned from the financial creditor. Further corporate debtor contended that the transaction between the parties is not a financial transaction but an operational transaction leading to an operational debt. Thereby, financial creditor ought to have filed Application under Section 9 of I&B Code, 2016. The counsel contended that there is no bonafide on the part of the financial creditor in initiating action against the corporate debtor and ....