TaxTMI 
TaxTMI 
2020 (10) TMI 384
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..... Ltd. ("Respondent") for initiating their Corporate Insolvency Resolution Process ("CIRP") for their inability to liquidate a claim of Rs. 5,87,00,000/-. 2. That the Petitioner has averred as follows: a. That at the request of the Corporate Debtor they had granted various loan facilities to the Corporate Debtor, which are evidenced by banking transactions, details whereof are as under: Date of Transfer Name of the Bank Amount (Rs) 22.07.2014 Axis Bank 2,50,00,000.00 03.09.2014 Axis Bank 47,00,000.00 09.03.2015 Andhra Bank 25,00,000.00 11.03.2015 Andhra Bank 25,00,000.00 11.12.2014 HDFC Bank 2,500,000.00 31.12.2014 HDFC B....
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....y the Respondent on grounds that there is no loan agreement executed between the parties. In addition, the respondent has objected to the interest being levied. It is argued by the Ld. Counsel for the respondent that no interest, muchless at the rate levied, is payable in the absence of any agreement to pay the same. The respondent denies being in default. Further, the debt has not accrued with the time value for money, which is a necessary condition under section 5(8) of the Code for being construed as a financial debt. 5. The financial transaction between the parties was subsequently described by the CD/respondent in the supplementary affidavit as an advance towards the purchase of the property. It is submitted as such it does not fall....
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.... been made vide Recall notice dated 07.02.2019. To support his contention he placed reliance on the Judgement passed by the Hon'ble Delhi High Court In the matter of Virendar Kumar Jain Vs. Aluminate (India) Pvt. Ltd. RFA No. 153/2004 wherein it was held: "In my opinion, the suit of the appellant/plaintiff cannot be said to be barred by limitation inasmuch as the averments in the plaint show that the loan was given without fixing any date of repayment. Once that is so, the loan would be a loan which would be repayable on demand. The demand in this case is alleged to have been made upon the respondent/defendant for the first time by the notice dated 14.12.2001. The period of limitation therefore will be three years from 14.12.20....
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.... interest. The Corporate Debtor has acknowledged the same as a borrowing in their financial statements. Vide their supplementary affidavit, the amount received by them is stated as an advance towards purchase of land. We are of the opinion that holding the financial creditor's money without delivering, gives rise to a financial debt and should be returned. Section 3(6) of the code defines a claim as a right to payment, non payment of the same gives rise to a default. This Bench is of the view that the objection raised by the respondents with respect to absence of a loan agreement is not fatal to the case of the financial creditor as the transaction itself is admitted. The Hon'ble NCLAT In the matter of Mack Softtech Pvt. Ltd. Vs. Qu....
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....ed" under "transactions" not covered by any of the other clauses, would amount to a financial debt if they had the commercial effect of a borrowing........" 5. Given the facts of this case, this bench is of the view that, the objections raised by the respondents with respect to absence of loan agreement is not fatal to the case of Financial Creditor since the transaction has not been denied by the Respondent. Further, this bench finds merit in the arguments made by the Ld. Senior Counsel appearing for the petitioner on the issue of limitation and commission of default. The law on this point is very clear that in matters where the term of the loan has not been fixed, the same is payable on Demand and the limitation shall commence when the....