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TMI Blog2022 (4) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... - amount given as Share Application Money - Financial Debt or not - HELD THAT:- Admittedly, the amount was given, as per the case of the Appellant, as a Share Application Money on which no share was allotted. Under some settlement, the principal amount was refunded and thereafter, the Application under Section 7 was filed by the Appellant - the Adjudicating Authority rightly took the view that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the Appellant. 2. This Appeal has been filed against the order dated 02.03.2020 by which Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ( Code ) filed by the Appellant has been dismissed. 3. The Appellant s case is that he has given an amount of Rs. 1,03,00,000/- in the share capital of Respondent and same was shown as Share Application Money but no share wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as paid as a financial debt or that the money was paid against the payment of interest. Therefore, we find that the share application money does not fall under any of the clauses of Section 5(8) of the Code and it cannot be said to fall under the definition a debt alongwith interest, if any, which is disbursed against the consideration for the time value of money since no debt was disbursed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 6. Learned Counsel for the Appellant submitted that a cheque was also issued which was dishonored. It is for the Appellant to take appropriate proceeding, if any, in accordance with the law. 7. We, however, are of the view that the Adjudicating Authority did not commit any error in rejecting the Application under Section 7. There is no merit in the Appeal. The Appeal is dismissed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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