9911796707
TMI Blog2025 (1) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... by which C.P. (IB) No. 22/CB/2022 filed by the Appellant to initiate Insolvency Resolution Process against the Corporate Debtor has been rejected. 2. Brief facts necessary to be noticed for deciding the Appeal are : i. The Appellants are Shareholders of Company namely SSAB Energy and Minerals Limited engaged in iron ore. A Share Transfer Agreement between the Shareholders of SSAB represented by the Appellant and Respondent was entered on 26.02.2021 for consideration of Rs.9,59,34,418/- . ii. The Share Transfer Agreement also contemplated sale of existing iron ore stock was about 8,000 MT. iii. The Agreement contemplated that iron ore shall either be sold by the Appellant on the price agreed or the Respondent shall purchase the existi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Affidavit have been filed by the Appellant on 31.07.2024, where the Appellant has pleaded that the amount of Rs.25 Lakhs each totalling to Rs.1 Crore transferred to Appellant was towards proceed of the sale of iron ore and that was not paid towards the share sale consideration. In Paragraph 3 of the Affidavit following has been pleaded: "3. I further state and affirm that the said amount of Rs.1,00,00,000/- was paid by the Respondent to the Appellants as part of the proceeds from the sale of 8795 MT of iron ore, out of the total market value amounting to Rs.2.65 Crores due to the Appellants, as communicated to respondents vide email dated 08.04.2021. The said amount was not paid towards the share sale consideration to the outgoing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the sale of iron ore will require appropriate permissions from mining dept...." 5. Thus, the sale of iron ore which was contemplated in the above part of the Share Transfer Agreement was clearly apart from the sale consideration for the Share Transfer and was receivable and is clearly covered by Section 5(8)(e) and shall fall within the definition of Financial Debt. The correspondent between the Parties which has been brought on the record indicate that Appellant has been asking the Respondent to make the payment of Rs. 2.65 Crores, out of which amount of only Rs. 1 Crore was transferred which is reflected in the email dated 30.06.2021. In spite of the legal Notice issued on 22.08.2021, balance amount was not paid, hence the Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Financial Creditors are in context of sale proceeds of iron ore stocks of SSAB, which in terms of the aforesaid Share Transfer Agreement was to be received by CD and then to be remitted to the Financial Creditors. FC claims that towards sale of aforesaid iron ore CD has received Rs.2.65 Crore and made remittances to the tune of Rs.1.00 crore however, defaulted to remit the balance amount of Rs.1.65 crore." 8. Adjudicating Authority has made observation that in Paragraph 15 the date of default is an important factor and there is no sufficient reasoning given for arriving at the date of default. Appellants having been writing to the Respondent that about the value of the iron ore and the fact that has been sold and the fact that amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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