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TMI Blog2019 (11) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... f. Section 238 of IBC has overriding effect on provisions inconsistent with IBC. The Financial contract is defined in Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 Rule 3(1)(d) requires setting out the terms of the financial debt including tenure etc. - It is found that Appellant has failed to show any record showing financial debt to be there. As such, there are no fault in the impugned order while rejecting Section 7 application. The part of impugned order of the Adjudicating Authority as regards the imposing of a fine of ₹ 1 lakh relying on Section 75 of IBC is set aside - Rest part of the impugned order does not call for interference - appeal allowed in part. - Company Appeal (AT) (Insolven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, no document has been produced on the part of petitioner by way of any loan agreement or demand promissory note or such other document to establish that the money is payable on demand and there has been default and that Corporate Debtor is also bound to pay interest on the loan amount made available by the Financial Creditor. It is also noteworthy to mention that it is stated that there is only an oral agreement between the parties regarding the loaned amount. 11. . It is stated in the recall notice filed as Annexure-5 of the petition and also in the Page9 of the typed set of the petition that till 25.12.2018 interest of ₹ 1,31,440/- was received by the Financial Creditor. However, the payment of such interest is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(1)(d) requires setting out the terms of the financial debt including tenure etc. We find that Appellant has failed to show any record showing financial debt to be there. As such, we are unable to find any fault in the impugned order while rejecting Section 7 application. 8. At this stage, learned Counsel for the Appellant submits that it was improper on the part of the Adjudicating Authority to impose a fine of ₹ 1 lakh relying on provision of Section 75 of IBC which relates to false information. Looking to the facts even if Appellant failed to make out case, that by itself may not be sufficient to invoke Section 75 of IBC. 9. We set aside the part of impugned order of the Adjudicating Authority as regards the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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