TMI Blog2022 (7) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant as well as the Corporate Debtor towards carrying out the project was divided and all those financial liabilities were towards the completion of the project. There was no disbursement of the loan for the time value of money which is essential requirement for a debt to be treated as financial debt under Section 5(8) of the IBC. The minutes of meeting dated 16.03.2018 on which Counsel for the Appellant has much relied admits the liability of the Corporate Debtor to make the payment. The mere fact that the Corporate Debtor has admitted liability to make payment in its minutes of meeting does not change the character of the transaction into a financial debt. In Clause 18 of the contract contains arbitration clause, for settling amicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents in defense. The Adjudicating Authority heard the parties and has passed the impugned order on 27.04.2022. In paragraph 12, it was held that the Application under Section 7 filed by the Appellant was not maintainable and the same stands rejected and accordingly, the Application I.A No. 677 of 2021 was also rejected. 3. Shri Ketan Parikh, Learned Counsel appearing for the Appellant challenging the order contends that the Adjudicating Authority committed error in holding that there was no financial debt whereas in view of the minutes of the meeting dated 16.03.2018 r/w Sub-Contract Agreement dated 07.03.2017 and 24.08.2017, it was financial debt. He submits that the Appellant has invested amount in the project to the extent of 50% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or carrying out the project entered into the Sub-Contract Agreement with the Appellant. The terms and conditions under which project was to be carried out had been mentioned in the Agreement, and Learned Counsel for the Appellant has relief to paragraphs 3 and 4 of the Sub-Contract Agreement which is to the following effect:- "3) All financial arrangement required for the said project shall be arranged by party of first Part and party of the second part equally. 4) All type of payments from IOCL shall be received in the Cash Credit Account of party of First Part (Account No. 121013023969) with Dena Bank, Satellite Branch, Ahmedabad. The party of the first part shall release 50% of the payment(s) to the party of the second part immediate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivered under Rule 151 of the NCLT Rules, 2016. The order which is preface to the judgment reads as follows:- "The matters were heard almost in the month of March but orders could not be pronounced because Technical Member was not available. Technical Member will not be available for another couple of weeks, hence, matter cannot be kept pending for pronouncement because hearing was concluded almost a month ago. Hence orders are pronounced invoking Rules 151 of NCLT Rules, 2016 with consent of other Member." 10. We are of the view that there is no error in delivering the judgment invoking Rule 151 of the NCLT Rules, 2016 due to absence of Technical Member who has already agreed with the judgment. 11. We do not find any merit in this Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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