AI Drafter 
TaxTMI 
TaxTMI 
2019 (10) TMI 1295
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....corporate debtor given is CIN U80301DL2005PTC134622. 3. It is submitted by the petitioner that it had disbursed a total amount of Rs. 20,46,500 to the respondent-company in its capacity as the director of the said company in pursuance of the resolution passed by the company in the meeting of board of directors dated September 1, 2015. The said resolution reads as under : "Resolved that, as the company is in deep financial trouble, because of non-availability of funds for payments to GNIDA and for continuing construction, hence the directors of the company be and are hereby authorized to take/introduce necessary unsecured loans from shareholders, directors as well as relatives/related parties. Resolved further that, the said loan shall be used to clear the over due amount of Greater Noida Industrial Development Authority and to continuing construction of school building. That the amounts introduced/taken will be returned along with interest at 12 per cent., which is lower than the rate of interest being charged by Greater Noida Industrial Development Authority. Resolved further that, any such amount of loans obtained by the company shall be returned bac....
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....fault is not a "financial debt" within the meaning of section 5(8) of the Code. 10. The petitioners have out rightly denied the assertion of the corporate debtor and have placed reliance on the judgment of the hon'ble Appellate Tribunal in the case of Shailesh Sangani v. Joel Cardoso [2019] 7 Comp Cas-OL 207 (NCLAT) ; [2019] SCC Online NCLAT 52 where it held as under (page 212 of 7 Comp Cas-OL) : "A plain look at the definition of 'financial debt' brings it to fore that the debt along with interest, if any, should have been disbursed against the consideration for the time value of money. Use of expression 'if any' as suffix to 'interest' leaves no room for doubt that the component of interest is not a sine qua non for bringing the debt within the fold of 'financial debt'. The amount disbursed as debt against the consideration for time value of money may or may not be interest bearing. What is material is that the disbursement of debt should be against consideration 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 inclu....
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....trial Development Authority (GNIDA) on behalf of the company as per the resolution passed by the board of directors in its meeting dated September 1, 2015. The copies of the balance-sheets filed for the years ending 2015, 2016 and 2017 depict borrowings from the directors, shareholders and related parties under the heading "short-term borrowings" to the tune of more than Rs. 9 crores. Even otherwise there is overwhelming evidence placed on record to show that the amount as claimed "due and payable" was disbursed by the petitioner to the GNIDA on behalf of the respondent-company. 12. As a sequel to the aforesaid discussion and the material placed on record it is confirmed that the petitioner-financial creditor had disbursed money to the respondent-corporate debtor. It is accordingly held that the respondent-corporate debtor has committed default in repayment of the outstanding financial debt which exceeds the statutory limit of rupees one lakh. Thus, the petition warrants admission as it is complete in all respects. 13. Learned counsel for the petitioner has argued that all requirements of section 7 of the Code for initiation of corporate insolvency resolution process stand fu....
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....ver be subject to adjustment by the committee of creditors as accounted for by interim resolution professional and shall be paid back to the financial creditor. 20. Directions are also issued to the ex-management to provide all documents in their possession and furnish every information in their knowledge within a period of one week from the admission of the petition to the IRP, otherwise coercive steps to follow. 21. There is a general complaint received against the financial creditors, banks, NBFCs and asset reconstruction companies that the amount claimed by them is far more than what is owed by the corporate debtor to them. Many a times the rate of interest is alleged to be exorbitant and allegations are levelled that a penal interest compounded monthly has been charged. We have no mechanism of rectification of claims made. However, the RPs ordinarily have professionals and experts at their disposal and in case the ex-management raises any such issue then the RP must get it settled in order to avoid any injustice to the corporate debtor. 22. The office is directed to communicate a copy of the order to the financial creditor, the corporate debtor and the interim resolut....