2022 (2) TMI 418

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..... ing, the Applicant was directed to convince the Bench, "whether the amount claimed under the Promissory Note comes under the definition of Financial Debt and whether the Board of Director of Corporate Debtor was authorized to borrow the loan from the applicant or note?" 3. The Learned Counsel for the applicant, in course of hearing, submitted that the Board resolution regarding the borrow the loan 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- .....

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..... d like to refer to Section 5 sub-Section 8 of IBC, 2016 and the same is reproduced below:- Section 5 sub-Section 8 of IBC, 2016 (8) "financial debt" means a debt alongwith interest, if any, which is disbursed against the consideration for the time value of money and includes- (a) money borrowed against the payment of interest; (b) any amount raised by acceptance 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 Stand .....

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..... bonds, notes, debentures, loan stock or any similar instrument comes under the definition of Financial Debt. 10. At this juncture, we would like to refer to the definition of Promissory Note as defined Under Section 4 and Negotiable Instrument defined under section 13 of the Negotiable Instrument Act and the same is reproduced 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, bil .....

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