TaxTMI 
TaxTMI 
2026 (1) TMI 163
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.... Rakesh Kumar Jain (Oral) The present appeal is filed by the Suspended Director of the Corporate Debtor to challenge the order dated 07.11.2024 by which application filed under section 7 of the IBC 2016, by Financial Creditor namely, National Agricultural Cooperative Marketing Federation of India (NAEFED), for the resolution of an amount of Rs. 194,01,78,454/- has been admitted and Mr. Sanjeet Kumar sharma was appointed as the IRP. 2. The facts in brief are that, the NAEFED agreed to grant financial debt to the Corporate Debtor (Zenith Mining Pvt. Ltd.) by way of an agreement dated 12.02.2004 for extracting iron ore from mines in India and to execute its export orders. 3. On 27.02.2004, the Corporate Debtor submitted a proposal to ....
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....6. According to the financial creditor the entire amount payable as on 31.03.2023 would work out to Rs. 194,01,78,454/-. 7. Since the amount was not paid, therefore, the application under section 7 was filed which was registered as CP (IB) No. 4/CB/2024 before the NCLT Cuttack Bench. The Tribunal while admitting the application recorded the findings that "Hence, here the arbitral award is a decretal debt and the word "decree holder satisfies it and it comes under the purview of the definition of creditor under section 3(10) of the I&B Code and the filing of the petition under section 7 of I&B Code is maintainable." 8. Aggrieved against the award, the present appeal has been preferred under section 61 of the code by the Suspended Direc....
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....nkruptcy Code, 2016. Therefore, a recovery certificate issued in respect of the same claim, which is essentially a crystallization of the claim through the process of adjudication, had also be classified as a "financial debt" under Insolvency and Bankruptcy Code, 2016. Consequently, the nature of the underlying claim of the creditor, would determine the categorisation of the amount payable under the final decree passed adjudication of the same claim. The liability arising out of an arbitral award or a court decree would be categorised as either financial or operational debt depending on the nature of the underlying claim which stands crystallised through the arbitral or court proceedings." 10. According to the appellant, the arbitral awa....
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....e sight L/C would be transferred in the name of NAFED and a 2% PG band would be issued by the purchaser, d. The exports would be made on FOB basis. e) NAFED would advance money to ZENITH upto 80% of the FOB value of Goods (Short term finance) at an agreed rate of interest of 8.00% p.a. f) ZENITH would arrange a cash margin of 10%, which would be deposited with NAFED. g) The money received as advance would he adjusted against the total value of experts and the balance payment released to ZENITH. 6. SERVICE CHARGES NAFED will charge minimum service charges @1% from ZENITH on the FOB value of goods to be exported. 7. DELIVERY OF GOODS AT PORT a) ZENITH shall make sure that....
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....t they attended the meeting and signed the minutes. It is stated that the original minutes of the said meeting are in the custody of the CBI and the copy of the minutes is marked as Ex.PW-1/8(Ex.F). The certified copies of the statements made by the respondents before the High Court on 25.11.2008 have been exhibited as Ex.PW-1/9. 14. In rebuttal, counsel for the appellant has submitted that the agreement dated 16.03.2004 is in regard to indemnity. 15. We have heard counsel for both the parties and perused the record. 16. In so far as, the issue raised by the appellant that the court can look into the contents of the award to find out as to whether the money awarded to the party is basically in regard the goods and services supplied....