9911796707
TMI Blog2022 (9) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... directed against the order dated 26.11.2019 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Court No. VI) by which an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (in short 'Rules') was dismissed, inter alia, on two grounds, firstly, that the application filed under Section 7 was not maintainable for want of valid authorization and secondly, the loan advanced by the Appellant was converted into equity by her own act and conduct and as such it does not fall within the definition of financial debt which is due and payable. 2. Initially the Appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the parties. 4. It is pertinent to mention that in the Appeal i.e. CA (AT) (Ins) No. 111 of 2020 filed against the order dated 26.11.2019 of the Adjudicating Authority, one out of two findings recorded in favour of the Respondent was reversed by the Appellate Authority about the maintainability of the application under Section 7 which was not challenged by the Respondent by way of an Appeal before the Hon'ble Supreme Court and the Hon'ble Supreme Court has also referred only to the finding of this Appellate Tribunal in regard to the issue as to whether the amount of loan is a debt or has been converted into capital as has been held in the order passed in CA (AT) (Ins) No. 111 of 2020. 5. Counsel for the Appellant has submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t agreement titled as LLP agreement was executed on 22.12.2012 between Ajit Sinha and Ajit Mishra, two designated partners. The second agreement dated 13.04.2013 was executed to induct M/s Invest Care (P) Ltd. with Ajit Sinha and Ajit Mishra, designated partners. A supplementary agreement dated 01.12.2013 was also executed between the same parties to invite general partners. The amount of Rs. 15,44,40,000/- which was earlier brought by loan, out of which 13,53,50,000/- has been converted into equity contribution in terms of resolution dated 10.03.2014 by the designated partners. It is, thus, the case of the Respondent that the Appellant being a general partner had agreed voluntarily to convert their shares of loan into equity. 8. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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