To bring any existence of debt within the ambit of the definition of “Financial Debt”, disbursement of money is sine qua non – Kesoram Industries Ltd. Vs. Pratim Bayal, RP of Birla Tyres Ltd. – NCLT Kolkata Bench
NCLT Kolkata Bench held that:
(i) It is also a settled position of law that to establish a “financial debt”, the statement of the disbursement of money is essential. To bring any existence of debt within the ambit of the definition of “Financial Debt”, disbursement of money is sine qua non and in the instant application nothing in record substantiates that the money has been disbursed by the Applicant to Corporate Debtor.
(ii) Though it is shown as an “Inter-Company Debt”, the applicant has failed to prove the transaction as a deposit of money or a loan from the Applicant’s account to the Corporate Debtor’s Account before the initiation of CIRP as well as a relationship between the parties which proves that it is a mere transaction of money from one account to another account.
