2019 (8) TMI 1140 - AT - Insolvency and Bankruptcy

Maintainability of petition - Initiation of Corporate Insolvency Resolution Process - Corporate Debtor - HELD THAT - The aforesaid submission cannot be accepted in absence of any relationship between the Impex India Inc. (Financial Creditor) and Seajaan Logistics Private Ltd. (Corporate Debtor) and the Corporate Debtor has failed to bring on record any evidence to show that it was a friendly loan and not to be refunded. So far as the maturity of the loan is concerned, admittedly, the loan have been taken on 15th November, 2015 vide cheque No. 002334. As the loan amount is ₹ 15 Lakhs and the part amount has not been paid, the Adjudicating Authority rightly held that the Corporate Debtor defaulted in paying the debt , which was more than ₹ 1 Lakh. As pleaded that the Financial Creditor has admitted that they have received the amount of ₹ 11,60,000/- but it was not disputed that the rest of the amount, which is more than ₹ 1 Lakh, has not been paid. Appeal dismissed.

Summary

Issues:
1. Application u/s 7 of the Insolvency and Bankruptcy Code, 2016 filed by 'Impex India Inc.' against 'Seajaan Logistics Pvt. Ltd.'
2. Default on a loan by the 'Corporate Debtor' and the nature of the loan.
3. Adjudicating Authority's decision on default and debt repayment.

Analysis:
1. The Respondent, 'Impex India Inc.,' filed an application under section 7 of the Insolvency and Bankruptcy Code, 2016 against 'Seajaan Logistics Pvt. Ltd.,' which was admitted by the Adjudicating Authority. The Director of the 'Corporate Debtor' argued that the loan had not matured and was a friendly loan. However, the Tribunal rejected this argument due to the lack of evidence showing a friendly nature of the loan and the default on the loan amount of ?15 Lakhs taken on 15th November 2015.

2. The Tribunal noted that a part of the loan amount had not been repaid, leading to a default by the 'Corporate Debtor' in paying the debt exceeding ?1 Lakh. Although the 'Financial Creditor' acknowledged receiving ?11,60,000, the remaining amount, which was over ?1 Lakh, had not been paid. The Tribunal emphasized the importance of repayment obligations and upheld the Adjudicating Authority's decision on the default.

3. Considering the undisputed facts of the case, the Tribunal found no reason to interfere with the impugned order and dismissed the appeal without imposing any costs. The decision highlighted the significance of timely repayment and the legal consequences of defaulting on financial obligations under the Insolvency and Bankruptcy Code, 2016.