2019 (10) TMI 1293

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....espondent/ Corporate Debtor. 2. As per the averments made the Financial Creditor is engaged in the business of carrvin cs out civil contracts under the name and style of M/S. S.S. Enterprises. The Corporate Debtor is in the business of construction and proposed to develop a project "Galactic City" in Greater Noida. During the course of business dealings, the Corporate Debtor approached the Financial Creditor for grant financial assistance. A loan of Rs. 50 lakhs was given on interest @ 1% per month. Again on 12.09.2018, the Financial Creditor entered into the second MOU for an additional deposit of Rs. 40lakhs on the same terms and conditions. The Corporate Debtor also agreed to grant a construction contract worth Rs. 10 Crores to the Fina....

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....btor. 5. Upon appearance, the Corporate Debtor has filed its reply and seeks to resist the petition on grounds that the said transaction does not fall within the ambit of a 'financial debt'. It is their case that the said amount was a refundable security deposit given in respect of a real estate transactions and cannot give rise to proceedings under the Insolvency and Bankruptcy Code. The endeavor of the Corporate Debtor was to link this amount as a security towards the contract for construction promised to be awarded to the petitioner, but admittedly which was not done. The prayer made in the present petition is therefore impugned on the ground that the petitioner cannot claim to be a financial creditor as the said amount was given by way....

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....ng unit Nos. 1, 2, 17 and 18 situated at Galactic City to be developed on Plot No. 6, Knowledge Park 5, Greater Noida West. To secure the timely payment of interest, 11 post dated cheques were tendered. Legal notice issued by the petitioner is on record demanding back the aforesaid amount. 8. From the submissions made, it is apparent that financial assistance of P.s. 90 Jakhs was given to the Corporate Debtor on terms and conditions inviting interest @ 2% per month. The Corporate Debtor has failed to remit the interest as well as the principal amount. The cheques given in discharge of the Principal loan liability were dishonoured on presentation, as were the cheques given for interest. 9. The Corporate Debtor tends to seek benefit of the ....