TaxTMI 
TaxTMI 
2026 (1) TMI 660
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....e instant Company Appeal is to the impugned order dated 07.01.2024, as it was rendered by the Learned NCLT, Bengaluru Bench, in CP(IB) No. 20/BB/2023, by virtue of which the Section 7 Application preferred by the Respondent (M/s. PDB Venture Pvt. Ltd.), the Financial Creditor, was directed to be admitted, and as a consequence, CIRP proceedings were directed to be commenced against the Corporate Debtor, M/s. Arisu Retail Private Limited of which Mr. Vasudev Bissa is a Director. 2. The brief facts which require consideration herein for adjudication of the instant Company Appeal, particularly in the context of the submissions of the Learned Counsel for the Appellant, are from the perspective that the admission of the proceedings under Secti....
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....the Appellant's own admitted case that the company partially repaid the amount, but since the payment of the amount was not substantiated by proof, the proceedings under Section 7 of the I&B Code were initiated by the Respondent. The Appellant further admits that as against the loan advances, an interest of 7% was agreed to be paid, amounting to Rs. 7,44,780/-, and that Tax deducted at source (TDS), on the said amount has been deducted as reflected in Form 16A submitted under Rule 31(1)(b) of the Income Tax Act, 1961. The Learned Counsel for the Respondent argued that since the Appellant's own pleadings and documents, including Form 16A, show that TDS was deducted, the financial assistance of Rs. 2,05,00,000/- stands established, and cannot....
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....e balance sheet or supporting documents are sufficient to justify initiation. He referred to entries in the balance sheet for the year ending 31.03.2021, particularly Page 3 (Page 94 of the Appeal), reflecting the existence of a debt and contended that these entries sufficiently demonstrated that the amount was due, constituting a financial debt. 8. We are of the opinion that the entries in the balance sheet, particularly those relating long-term advances in Column 9 and interest paid, reflect that long-term advances were extended, though not secured loans. The Appellant attempted to distinguish the correspondence dated 24.09.2020 issued by Director Mr. Mohammed Sulaiman, acknowledging receipt of Rs. 2,05,00,000/- and agreeing to repay t....
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....oted that there were continuous financial transactions between the parties and that the amount was duly reflected in the books and that entries in the balance sheet for the financial year 2020-21 showed that the loan amount was transferred for business purposes and reflected under Long-Term Borrowings (Unsecured). 12. During the proceedings, the Respondent produced additional documents, including Form D and acknowledgments signed by former Director Mr. Mohammed Sulaiman, which further established default. 13. A weak attempt was made by the Appellant to argue that Mr. Mohammed Sulaiman was merely a "nominee director", but the Tribunal rejected this as misleading, since records showed he was a Director since 26.02.2020, including during....