Inspection of admitted claims

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.

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 Read Post »

Adjudicating Authority can issue direction to Resolution Professional to give copies of claims documents to the particular Financial Creditors – Acrow Construction Pvt. Ltd. & Ors. Vs. Punjab National Bank & Ors. – NCLAT New Delhi

Present is the case where the Adjudicating Authority has directed for giving copies of the claims documents as required by the Applicants after inspection. NCLAT holds that there is no doubt that RP by himself cannot share the documents with any individual member of CoC unless the CoC takes a decision under Section 21(9) asking any documents from the Resolution Professional. The Order of the Adjudicating Authority for directing copies is case specific and based on the application in the present case filed by the Respondent Bank. The Resolution Professional is obliged to give such documents if any decision is taken under Section 21(9) of the Code by CoC. The direction of the Adjudicating Authority to give copies of claims documents to the particular Financial Creditors cannot be held to be not within domain of the Adjudicating Authority and in particular facts of the present case such power can very well be exercised by the Adjudicating Authority and direction issued by the Adjudicating Authority for supplying copies of the claims documents needs no interference in exercise of our appellate Jurisdiction.

Adjudicating Authority can issue direction to Resolution Professional to give copies of claims documents to the particular Financial Creditors – Acrow Construction Pvt. Ltd. & Ors. Vs. Punjab National Bank & Ors. – NCLAT New Delhi Read Post »

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