9911796707
TMI Blog2019 (8) TMI 1594X X X X Extracts X X X X X X X X Extracts X X X X ..... ies of the parties arising out of mortgage, despite the same being connected to the debt in relation to which an application under the Code has been made. That would amount to resurping upon the jurisdiction not vested in it. The Mortgagor or the Mortgagee in order to establish/enforce their rights arising out of the transaction may have to take recourse to a forum other than the extant one. Whether the debt in question was a Financial Debt or an Operational one cannot be decided under the present application. The issue touching upon the maintainability of the Company Petition would be dealt while considering its merits. Application not maintainable and is dismissed. - IA. No. 27/2019 in TCP (IB) No. 22/9/AMR/2019 and CP (IB) No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Debtor had executed and registered Memorandum of Title Deeds (MoD) on 15.03.2016 mortgaging three parcels of land in favour of the Respondent Operational Creditor. The property mortgaged valued at ₹ 4.5 crores were kept as security against the supply of stock worth of ₹ 3.5 crores for expansion of the business of the Corporate Debtor and one Spads Textiles. He therein agreed to repay the sum of ₹ 3.5 crores with interest to the Mortgagee and acknowledged the receipt of ₹ 3.5 crores. It is further contended that the debt as claimed by the Respondent (OC) did not arise out of normal sale and purchase transactions. It is the result of a loan transaction repayable with interest independent of any operational debt. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Fibre and the Respondent had supplied them in the usual course of business. The payments in respect of the supplies were due within 22 days of supply. The Applicant (CD) despite persistent requests failed to honour the payments. The Respondent (OC) then approached Mr. M. V. Rattaiah for settling the payments. Only then he executed the MoD on 15.03.2016. When the payments were not made he was constrained to issue demand notice and approach this Tribunal. The debt has all along been an Operational Debt and could not be termed as Financial Debt as alleged. The Application is otherwise not maintainable and liable to be dismissed. 4. The Applicant (CD) in its rejoinder refuted the averments made in the counter. It reiterated that recitals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his personal capacity and not as the Managing Director of the Applicant Company. Though the loan of stock was for running the Company or its expansion, the Company as a corporate person couldn't be tethered thereto. 6. The mortgage created under the MoD is one under Section 58 (f) of the Transfer of Property Act. Enforcement or otherwise of the rights and liabilities of the parties arising out of the transaction of mortgage would come within the exclusive domain of the Civil Court. This Tribunal would not be competent to adjudicate upon the rights and liabilities of the parties arising out of mortgage, despite the same being connected to the debt in relation to which an application under the Code has been made. That would amount to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
