09/05/2023

When Balance Sheet of Corporate Debtor has mentioned the amount as unsecured loan, the argument cannot be accepted that it is not loan and it is investment – Mohd Shadab Vs. Colorcity Homes Pvt. Ltd. & Anr. – NCLAT New Delhi

The Financial Creditor filed application under Section 7 for a Principal Amount of Rs.1.80 Crore. The Adjudicating Authority proceeded to hear the application and admitted the Section 7 application. The Financial Creditor relied on the Balance Sheet of the Corporate Debtor, where the amount was shown as unsecured loan. Learned counsel for the Appellant submits that in fact the amount was only investment and there was no loan and there is mistake in the Balance Sheet of the Corporate Debtor.
NCLAT held that when the Balance Sheet of the Corporate Debtor has mentioned the amount as unsecured loan, the argument of the Appellant cannot be accepted that it was not loan and it was investment. In the application which was filed by the Financial Creditor, although no reference of written agreement was mentioned, it was pleaded that amount was to be refunded with interest.

When Balance Sheet of Corporate Debtor has mentioned the amount as unsecured loan, the argument cannot be accepted that it is not loan and it is investment – Mohd Shadab Vs. Colorcity Homes Pvt. Ltd. & Anr. – NCLAT New Delhi Read Post »

Section 10A of IBC has no application when an action is initiated for default which occurred subsequent to Section 10A period – NuFuture Digital (India) Ltd. Vs. Axis Trustee Services Ltd. – NCLAT New Delhi

NCLAT observed that present is a case where date of default is claimed as 31.03.2021 in Part IV of the application and the application is filed including the default amount as per the Debenture Trust Deed, Schedule V, the default from 31.03.2021 onwards. Para 5 of Reply to the application where it was clearly stated that while the total claim would be higher, the present Petition is filed only with respect to the default committed after the 10A period was over i.e. for the default on 31st March 2021 and thereafter. What is prohibited by Section 10A is that no application shall ever be filed for the default which occurred during the period of Section 10A i.e. from 25th March, 2020 to 25th March, 2021. Section 10A has no application when an action is initiated for default which occurred subsequent to 10A period.

Section 10A of IBC has no application when an action is initiated for default which occurred subsequent to Section 10A period – NuFuture Digital (India) Ltd. Vs. Axis Trustee Services Ltd. – NCLAT New Delhi Read Post »

Mr. Arun Chadha Liquidator of Pawan Buildwell Pvt. Ltd. Vs. Ramesh Kumar Suneja – NCLAT New Delhi

NCLAT held that Section 43 of the IBC stipulates that if there is a transfer of property or an interest thereof of the corporate debtor for the benefit of a creditor or a surety or a guarantor for on an account of an antecedent financial debt or operational debt or other liabilities owed by the corporate debtor, such a transaction would be considered a preferential transaction. Moreover, if the transaction is with a ‘related party’ then the lookback period will be two years and if it is a party other than a ‘related party’ the lookback period would be one year preceding the insolvency commencement date as per sub-section 4 of section 43.

Mr. Arun Chadha Liquidator of Pawan Buildwell Pvt. Ltd. Vs. Ramesh Kumar Suneja – NCLAT New Delhi Read Post »

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