TMI Blog2022 (2) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... egory of any of similar instrument. Hence the Promissory Notes comes under the definition of Financial Debt under Section 5 sub-Section 8(5) of the IBC, 2016, hence, we are of the considered view that the Promissory note comes under the definition of Financial Debt. Non-submission of the Board Resolution regarding the authorization to borrow the loan - HELD THAT:- Admittedly, that has not been placed by the applicant but the applicant has referred to page 57 Annexure-A7 which shows that the confirmation of amount from 01st April 2019 to 31st March, 2020 is made by the authorized signatory of the Corporate Debtor and as per the books of account, the balance is of ₹ 1,77,46,750/- as on 31st March, 2020 - for the purpose of issuance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oan by the directors of the corporate debtor is not with the applicant because it is under the possession and control of the Corporate Debtor. 4. The Learned Counsel appearing for the applicant further submitted that the Corporate Debtor has acknowledged the debt in his balance-sheet and the Learned Counsel has referred to the page No. 57, Annexure-A7 of the application, by which the Corporate Debtor has confirmed the ₹ 1,77,46,750/- as on 31st March, 2020. 5. He further submitted that since there is a confirmation of accounts by the authorized signatory of Corporate Debtor on 29th July, 2020, therefore, the applicant has established this fact that the said amount is due and payable by the Corporate Debtor. He further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eptance under any acceptance credit facility or its dematerialised equivalent; (c) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; (d) the amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other accounting standards as may be prescribed; (e) receivables sold or discounted other than any receivables sold on non-recourse basis; (f) any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing; [Explanation.-For the purposes of this sub-cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below:- Section 4 of NI Act Promissory note. --A Promissory note is an instrument in writing (not being a banknote or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument. Section 13 of NI Act: Negotiable Instrument : A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. 11. On conjoint reading of these two provisions show that Promissory note comes under category of any of similar instrument. Hence the Promissory Notes comes under the definition of Financial Debt under Section 5 sub-Section 8(5) of the IBC, 2016, hence, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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