TaxTMI 
TaxTMI 
2022 (10) TMI 439
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.... (which subsequently got merged with the Appellant pursuant to a scheme of amalgamation sanctioned by Hon'ble Calcutta High Court on 02.06.2014) accepted to grant Inter Corporate Deposit to the Corporate Debtor of Rs.40 Crore and a cheque of Rs.25 Crore was annexed alongwith letter dated 16.05.2014. (iii) The Corporate Debtor from time to time has repaid some amounts on account of principal and also on account of interest. Corporate Debtor had also made deductions on account of Tax Deducted at Source and Form 26 AS was also filed in this regard. (iv) Due to defaults committed by the Corporate Debtor in servicing its Interest and its repayment obligation, a legal notice dated 04.01.2016 was issued regarding repayment of inter-corporate deposit, which notice was replied by the Corporate Debtor on 03.02.2016 where the Corporate Debtor stated that entire amount of Inter Corporate Deposit has been invested in various securities and due to adverse directions issued by the Securities and Exchange Board of India (SEBI) business of the company has come to a standstill. It was further stated that company has been making best possible efforts to manage funds to repay. The Co....
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....ter dated 14.05.2014 which was received from the Corporate Debtor has been mentioned and the same was filed as Annexure A-IV. It is useful to extract the letter dated 14.05.2014. "Dated: 14th May, 2014 Adventz Investments And Holdings Ltd. 31, Hongkong House, B.B.D. Bagh (South), Kolkata - 700001 Sub: Request for grant of Inter-Corporate Deposit (ICD). Sir, With reference to above you are requested to kindly grant us an Inter-Corporate Deposit (ICD) of Rs.40 Crore on the following terms and conditions: 1. ICD Amount : Rs. 40 Crore (Rupees Forty Crore only) 2. Rate of Interest : 12.50% p.a. (payable half yearly) 3. Repayment : 1 year with an option to renew further 4. Disbursement : Immediate in single or tranches 5. PAN No. : AABCGO769Q We shall appreciate for your immediate response. Thanking you Yours faithfully For Jai Annanya Investments Pvt. Ltd." 5. The request made by the Corporate Debtor was accepted vide letter dated 16.05.2014 which was also referred to and filed as part of Annexure IV, which is as follows:- "....
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....otice whereby you have called upon us to pay an amount of Rs. 29,03,17,465/- being the balance amount of intercorporate deposit sanctioned by you vide your letter dated May 16, 2016 together with interest thereon calculated at the rate of 12.50 % p.a. within 7 days from the date of receipt of the notice. In reply thereto, we inform you that the entire amount of inter-corporate deposit has been invested in various securities. Vide order dated August 20, 2015, the Securities and Exchange Board of India (SEBI) has restrained the Company from buying, selling or dealing in the securities markets, either directly or indirectly, in any manner, till further directions. Due to the adverse directions issued by SEBI vide its order dated August 20, 2015, the complete business of the Company has come to a standstill resulting in a loss of INR 93.12 Lacs to the Company. Further, the demat accounts of the Company has been frozen thereby preventing us from liquidating the investments and paying off our creditors. We further inform you that in order to liquidate the Company's investments and pay off its creditors, applications have been made by the Company to SEB....
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.... with regard to Inter Corporate Deposit. It is further relevant to notice that in the Financial Statements details of Inter Corporate Deposit where total Short Term Loans and Advance have been given. For example in the Balance Sheet as on 31.03.2015, Short Term Loans and Advance as on 31.03.2015 are mentioned as 1,46,31,84,491/- which referred to Note No. 2.14, which is to the following effect:- "NOTE No. - 2.14 SHORT TERM LOANS AND ADVANCES Unsecured. Considered good Inter-Corporate Deposit 1,43,37,53,247 Advances (recoverable in cash or kind or value to be received Advance Income Tax (net of provision) 54,01,771 Advances to Employees 14,83,873 Prepaid Expenses 3,16,286 Others 2,22,29,314 Unsecured. Considered Doubtful Inter-Corporate Deposit 18,56,87,409 Less: Provision for Doubtful Loans 18,56,87,409 1,46,31,84,491 10. The above financial statement clearly mentions the Inter Corporate Deposit of Rs.1,43,37,53,247/-. Similarly, with regard to other financial years mention of total Inter Corporate Deposit is given. The Adjudicating Authority has drawn adverse inference against the Fin....