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TMI Blog2021 (5) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... IBC, 2016. Thus, it is concluded that the alleged debt failed as Financial Debt - application dismissed. - IBA/194/2020 - - - Dated:- 29-4-2021 - R. Sucharitha, Member (J) And B. Anil Kumar, Member (T) For the Appellant : Om Prakash, Sr. Advocate, E.K. Kumaresan, B. Sarath Babu, G. Prabhu and Rohan Rajasekar, Advocates For the Respondents : P.H. Aravind Pandian, Sr. Advocate, K.K. Vijay Vignesh, Advocate and Jayanth Viswanthan, PCS ORDER R. Sucharitha, Member (J) 1. Under adjudication is an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by M/s. Tatia Global Venture Limited (herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the Agreements. As per Clause-7 of the Agreements, the Corporate Debtor was under an obligation to do all things necessary to have the title documents of the above properties released from the charge of the bank, prior to Registration i.e. 30.06.2016 and if the same was not done, then the Corporate Debtor was liable to pay interest on the advance @ 9% per annum from 01.07.2016 to the Financial Creditor till the date of release of documents and registration of the same. Since the Corporate Debtor had failed to have the charge released and hence, was liable to pay interest @ 9% per annum. 4. It is further submitted that the Applicant had issued a notice dated 19.12.2016 (Page. 75) intimating the Corporate Debtor of its intention to te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to be paid by the Corporate Debtor. 6. In the Reply filed on 01.10.2020, the Corporate Debtor contended that the Applicant is not a 'Financial Creditor' as the money was given as advance for agreement of sale which does not fall under the definition of a 'financial debt' as per Section 5(8) of IBC, 2016 and the application is not maintainable. Section 5(8) makes it clear that 'financial debt' means a debt along with interest, if any, disbursed against the consideration for time value of money . 7. The learned Senior Counsel for the Corporate Debtor submitted that the Applicant Company entered into an Agreement of Sale dated 04.01.2016 for purchase of immovable properties from the Respondent and the adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the parties and perused documents and citations submitted. It is seen from the 'Master Data' that the Applicant's company is a public company limited by shares. The transaction between both the parties arise out of agreement of sale dated 04.01.2016. Admittedly, after various issues between both, the agreement for sale was cancelled by Applicant and consequently sought for refund of the advance paid. This clearly fails as 'financial debt' under Section 5(8) of IBC, 2016. Hence, based on the above discussions, it is concluded that the alleged debt failed as Financial Debt . 12. Accordingly, this application IBA/194/2020 stands dismissed. 13. The Registry is hereby directed to immediately communicate this orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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