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TMI Blog2022 (6) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... APPELLATE TRIBUNAL, NEW DELHI ] wherein it was held that the written contract cannot be treated as an essential element or prerequisite to prove the existence of Financial Debt. The Financial Creditor has failed to bring on record any other evidence in the form of a loan agreement, promissory note, contract or any document to substantiate its claim that there was a financial debt and a default of the same. The Financial Creditor has produced the Corporate Debtor s Annual reports for the Financial Years 2016-17 and 2017-18. However, the same do not reflect any debt due specifically to the Financial Creditor - the Financial Creditor has placed reliance on its bank statements and confirmation of accounts of the Corporate Debtor that reflect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Forty-Three Lakh Only) was advanced by the Financial Creditors i.e. (Rs.1,50,00,000/- from Petitioner No.1 and Rs.2,93,00,000/- from Financial Creditor No.2) along with interest at the rate of 9 % p.a. to the Corporate Debtor and the Corporate Debtor has defaulted in repayment of the same. 3. The total amount claimed to be in default by the Financial Creditors is Rs.5,02,80,500/- (Rupees Five Crore Two Lakh Eighty Thousand and Five Hundred Only). The date of default stated to be is 3.07.2018. 4. The Corporate Debtor is a private company limited by shares incorporated on 10.06.1993 under the Companies Act, 1956, with the Registrar of Companies, Maharashtra, Pune. Its registered office is at 1st Floor, Runwal Roshni Plaza, 41/12 Karve R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,00,000/- 4. 15.06.2017 31,00,000/- 5. 17.06.2017 30,00,000/- 6. 19.06.2017 50,00,000/- 7. 20.06.2017 80,00,000/- 8. 20.06.2017 50,00,000/- 9. 21.06.2017 8,00,000/- 10. 05.07.2017 10,00,000/- 11. 07.07.2017 15,00,000/- Total 2,93,00,000/- 6. The copies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brevity. The Legal Notice addressed by the Corporate Debtor is placed as Exhibit F and F1 at pages 32-35 and pages 36-39 respectively . 11. The stand taken by the Financial Creditors is that they are not in the business of real estate. Hence, there is no question of entering into a Joint Venture Agreement with the Corporate Debtor, as alleged by the Corporate Debtor in the Legal Notice dated 05.10.2018. Submissions made the Corporate Debtor: 12. The preliminary objection raised by the Corporate Debtor is on the issue of maintainability. The Corporate Debtor submits that the transaction between the parties does not classify as a Financial Debt. 13. Moreover, it is the case of the Corporate Debtor that Financial Creditors ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Four policy reasons have been stated by the learned Solicitor General for this shift in legislative policy. First is predictability and certainty. Secondly, the paramount interest to be safeguarded is that of the corporate debtor and admission into the insolvency resolution process does not prejudice such interest but, in fact, protects it. Thirdly, in a situation of financial stress, the cause of default is not relevant; protecting the economic interest of the corporate debtor is more relevant. Fourthly, the trigger that would lead to liquidation can only be upon failure of the resolution process. 16. The Corporate Debtor placed reliance upon the Order of Principal Bench in the case of Carnoustie Management India Pvt. Ltd. vs CBS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim amount was transferred for the purpose of Joint Venture Agreement. Moreover, the Corporate Debtor s financial statements for the Financial Year 2017-2018 disclose that there is no such joint venture. (Exhibit A Page 80 of Rejoinder). The Agreement relied upon by the Corporate Debtor is of Arvinda Infrastructure Private Limited. Therefore, the Financial Creditors are not parties or concerned with the said transaction. Findings: 19. Heard the Ld. Counsel for the Financial Creditors and the Ld. Counsel for the Corporate Debtor and perused the records. 20. It is the contention of the Corporate Debtor s that there is no written contract regarding any loan being sanctioned to the Corporate Debtor by the Financial Creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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