TMI Blog2022 (9) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... xistence of an express agreement to prove the loan and its disbursement. The statement of accounts produced on record were held enough to prove the disbursement of loan amount. - the unsecured loan given by the Director of the Company is treated as a Financial Debt under Section 5 (8) of the Insolvency and Bankruptcy Code, 2016. The transactions of providing the unsecured loan amount claimed by the Applicant is shown in the HDFC Bank account of the Applicant and entries of the unsecured loan amount infused by the Applicant in the Company is also reflected in the audited balance sheet of the Corporate Debtor as on 31.03.2021. Therefore, the Applicant has placed sufficient documents on record to show that the money has been infused in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial, residential, or farm lands, plots, buildings, houses, apartments etc. and other such business of similar nature and/or such other allied activities of such nature on a large scale, there was a constant requirement of infusion of liquid funds into the Corporate Debtor for its commercial growth. 5. The Financial Creditor has infused interest free unsecured loan amount in the account of the Corporate Debtor from period March, 2015 to February, 2021 of Rs. 1,45,03,369/-. 6. Vide Demand Notice dated 19.03.2021 served through Speed post on 22.03.2021 upon the Corporate Debtor and email dated 22.03.2021, the Financial Creditors demanded the repayment of the interest free unsecured loan. It is submitted by the Financial Creditor th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for the time value of money. Clauses (a) to (i) of Section 5(8) embody the nature of transactions which are included in the definition of financial debt'. It includes money borrowed against the payment of interest. Clause (f) of Section 5(8) specifically deals with amount raised under any other transaction having the commercial effect of a borrowing which also includes a forward sale or purchase agreement. It is manifestly clear that money advanced but a Promoter, Director or a Shareholder of the Corporate Debtor as a stakeholder to improve financial health of the Company and boost its economic prospects, would have the commercial effect of borrowing on the part of Corporate Debtor notwithstanding the fact that no provision is mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 5(8) of the I .B Code, is an inclusive definition and even if a transaction which does not fall under any of those described under the provision can be classified as a 'Financial Debt'. 13. The Hon'ble NCLT, Mumbai Bench in Anchor Leasing Pvt. Ltd. v. Euro Ceramics Ltd. (CP No. 66/IBC/NCLT/MB/MAH/2018) wherein it was observed and held that IBC nowhere prescribed the compulsory existence of an express agreement to prove the loan and its disbursement. The statement of accounts produced on record were held enough to prove the disbursement of loan amount. 14. In view of the above judgments, the unsecured loan given by the Director of the Company is treated as a Financial Debt under Section 5 (8) of the Insolvency ..... X X X X Extracts X X X X X X X X Extracts X X X X
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