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TMI Blog2022 (5) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... the dispute arose and it was settled by meeting dated 16.03.2018. As per minutes of meeting dated 16.03.2018, the Corporate Debtor agreed to pay some amount to the Applicant but very nature of transaction under which the amount was agreed to pay, was the amount payable toward services provided by the Applicant to the Corporate Debtor by way of sub contract. Such amount does not fall in category of the financial debt - There are no opinion whether the amount claim could be the operational debt or not or it was a joint venture in between both the parties, it is held that the amount as claimed herein cannot be a financial debt and hence this application filed under Section 7 of IBC for initiation of CIRP of the Corporate Debtor is not maintai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l suit pending in the Court at Ahmedabad and in arbitration proceeding. It is further contended that the said amount cannot be a financial debt within meaning of Section 5(8) of IBC. Hence this application under Section 7 is not maintainable. 4. We perused the pleadings. We have gone through the evidence and materials on record. We heard learned counsel of both parties at length. 5. The Application is filed for initiation of CIRP of the Corporate Debtor under Section 7 of IBC alleging that the Corporate Debtor committed default in paying the financial debt of Rs. 1.85 crore as per the terms of settlement reduced in writing as per minutes of meeting dated 16.03.2018, whereas the Corporate Debtor firstly disputing the fact that any amount i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and payable under the sub-contract can be the financial debt? With certainty we answer this question in the negative. Both the Corporate Debtor and the Applicant relied on minutes of the meeting dated 16.03.2018. We have gone through them. They refer sub-contract dated 24.08.2017 executed in between the Applicant and the Corporate Debtor. The minutes further go on mentioning that the Corporate Debtor had diverted the funds of Rs. 1.85 cores (without paying the same to the Applicant as per the back to back sub-contract). The Corporate Debtor agreed to pay interest at the rate of 18% per annum to the Applicant. 8. We have noted relevant portion of minutes of meeting and it is stated therein that "Sub-contract Agreement dated 24.08.2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Debtor to carry civil work for IOCL. 11. It appears to us that the transaction in between the parties was a sub contract in between the Applicant and the Corporate Debtor. The Corporate Debtor though receives some bill amount from IOCL did not part with the Applicant its due share. Hence the dispute arose and it was settled by meeting dated 16.03.2018. 12. As per minutes of meeting dated 16.03.2018, the Corporate Debtor agreed to pay some amount to the Applicant but very nature of transaction under which the amount was agreed to pay, was the amount payable toward services provided by the Applicant to the Corporate Debtor by way of sub contract. Such amount does not fall in category of the financial debt. We are not expressing any opini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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