9911796707
TMI Blog2022 (5) TMI 1476X X X X Extracts X X X X X X X X Extracts X X X X ..... is maintainable only when the debt is a financial debt. On perusal of Section 5(8) of the IBC, it is seen that a debt alongwith interest, if any, which is disbursed against the consideration for the time value of money comes under the definition of financial debt and includes clause a to i. Thus, in order to initiate a CIR Process u/s 7 of the IBC, the prime consideration is that there must be existence of debt and only thereafter interest shall be added in the principal debt amount. As it is observed that the principal amount has not become due and payable as yet, therefore, there is no debt which is due and payable. Accordingly, there is no default in making the payment of the amount. Therefore, the only interest amount claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity premium, due and payable on 01.07.2021, 01.10.2021 and 01.01.2022 have not been paid by the Corporate Debtor, therefore, the present application is filed for the default of interest amount for the period of 3 quarters for the Financial Year 2021-22. 5. He further submitted that the interest amount without adding the principal amount can be treated, as a financial debt under Section 5(8) of the IBC. 6. On the other hand, the Ld. Counsel for the Respondent submitted that the only plea taken by the Respondent by filing the reply is that the debt claimed by the Petitioner is only the interest amount and not the principal amount. Ld. Counsel for the respondent further contended that the principal amount is not due and so it is not a f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the date of redemption. On conjoint reading of these two clauses, we are of the considered view, since there is a provision for redemption of the debenture after the expiry of one year, therefore, after the expiry of one year, the Applicant is entitled to opt for redemption and at the same time, he is entitled to get the amount at the face value, plus securities premium and accrued interest till the date of redemption. 11. As we observed, the Applicant has not claimed the principal amount which is due and payable after the expiry of one year from the date of issuance of the Debenture Certificate. 12. Now, the question is, without adding the principal amount, can CIR Process be initiated only on the defaulted amount of interest? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrowing; and (ii) The expressions, allottee and real estate project shall have the meanings respectively assigned to them in clauses (d) and (Zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);] (g) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account; (h) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution (i) The amount of any liability in respect of any of the guaran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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