NCLAT upheld AA decision where it was held that all transactions are sham & involved round tripping of the huge amount – Earth Gracia Buildcon Pvt. Ltd. Vs. Earth Infrastructure Ltd. Through its Resolution Professional – NCLAT New Delhi
Ld. Adjudicating Authority had held that the transactions do not fall within the purview of the definition of the Financial Debt and not supported with the consideration for the time value of money. The transactions are sham. The RP of the Corporate Debtor has rightly rejected the claim of the Financial Creditor and . Resultantly, rejected the application.
The Appellate Tribunal upheld the findings of the Adjudicating Authority and held that Financial Creditor has been unable to point out any consideration for the alleged debt. Thus, they have failed to prove that the transaction in question comes within the definition of Financial Debt and also held that:
