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TMI Blog2023 (7) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... ctoring Agreement was non-recourse agreement. The amount of Rs. 4,52,13,711/- was amount as due on 28.01.2019. The Adjudicating Authority found the said amount due and payable, there are no reason to take any different view - Financial Creditor will be entitled for payment of debt due along with interest at least till the insolvency commencement date i.e. 11.11.2022. The amount of Rs. 4,52,13,711.60/- under order of this Tribunal dated 07.12.2022 deposited, be paid to Respondent No. 1 - In addition to aforesaid payment of Rs. 4,52,13,711.60/-, the Appellant shall also make payment of simple interest at the rate of 14.50% p.a. till insolvency commencement date i.e. 11.11.2022 which payments shall be made to Respondent No. 1 within a period of 3 months from today. Appeal disposed off. - Company Appeal ( AT ) ( Insolvency ) No. 1476 of 2022 - - - Dated:- 4-7-2023 - [ Justice Ashok Bhushan ] Chairperson And [ Barun Mitra ] Member ( Technical ) For the Appellant : Mr. S. Rajagopalan , Advocate For the Respondents : Mr. Sanjiv Sen , Sr. Advocate with Mr. Abhay Itagi , Mr. Mohd Azeem , Ms. Anjali Singh and Mr. Mridul Suri , Advocates for R - 1 . JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditor claimed an amount of Rs. 4,52,13,711/- as on 28.11.2019. Reply was filed to Section 7 Application by the Corporate Debtor contesting the claim of the Financial Creditor. The Reply stated that applicant has right to recover the monies solely from ITNL. Liability under Factoring Agreement being payable by ITNL, Application under Section 7 is not maintainable. e. The Adjudicating Authority after hearing the parties vide order dated 11.11.2022 admitted Section 7 Application. Aggrieved by which order, this Appeal has been filed. 3. The Appeal was heard by this Tribunal on 07.12.2022. Appellant offered to deposit the entire amount of Rs. 4,52,13,711/-. On 07.12.2022 following order was passed by this Tribunal: 07.12.2022: Learned Counsel for the Appellant submits that the Appellant is ready to deposit the entire amount of Rs.4,52,13,711.60/- in the name of Respondent No. 1. He submits that the Demand Draft has already been prepared and he is ready to deposit before the Registrar of this Tribunal. 2. Learned Counsel for the Appellant is permitted to deposit the Demand Draft of the same amount drawn in the name of The Pay and Accounts Officer, Ministry of Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Recourse in the Factoring Agreement is a right of the Financial Creditor to require Corporate Debtor at any time forthwith upon notice, to pay to Respondent No. 1 an amount qua to the prepayment amount remaining unpaid. The submission of Appellant that the factoring agreement was with no recourse basis is incorrect. When the debt and default is proved, petition is bound to be admitted. The Corporate Debtor has admitted and acknowledged the debt and default. 7. We have considered the submissions of Learned Counsel for the parties and have perused the record. 8. The first submission which has been advanced by Learned Counsel for the Appellant is that amount which is subject matter of Section 7 Application is not a Financial Debt within the meaning of Section 5(8)(e) of the Code. Section 5(8)(e) provides as follows: Section 5: Definitions. (8) financial debt means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes- (a) .. .. (e) receivables sold or discounted other than any receivables sold on nonrecourse basis; . 9. The above provision clearly indicates t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd to absolve itself from liability to pay the interest at the rate of 14.5 % p.a. It is submitted that amount which was claimed in Section 7 Application was amount which was payable as on 28th January, 2019. The Financial Creditor is entitled to payment of entire financial debt including interest at least upto that date. 14. We have considered the above submissions and perused the record. Appellant having expressed willingness to make the payment of Principal Amount as claimed in Section 7 Application, we are inclined to give an opportunity to the Appellant to make the payment. Part-IV of the Section 7 Application gives the details of financial debt as claimed in the Application. Part IV which gives the details of amount as claimed to be debt and default is as follows: 2 Amount claimed to be in default and the date on which the default occurred (attach the working for computation of amount and dates of defaults in tabular form) The total amount claimed to be in default by the Corporate Debtor is Rs. 4,52,13,711.60/- (Rupees Four Crores Fifty Two Lakhs Thirteen Thousand Seven Hundred and Eleven only) as on 28.02.2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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