NCLT rejects the application u/s 7 of the IBC in the absence of Financial Contract as defined in clause (d) of Rule 1 of AAA Rules, 2016 – Karmal Garment Exports Vs. M/s. Jai India Weaving Mills Pvt. Ltd. – NCLT Chennai Bench
September 12, 2021
The Adjudicating Authority referring to the clause (d) of Rule 1 of AAA Rules, 2016, held that while filing this petition to place on record before this Authority, the 'Financial Contract' and demonstrate without any ambiguity from the financial contract, the amount disbursed as per the loan/debt, the tenure of the loan/debt, the interest payable and the conditions of repayment. In the present case, it is evident that the Financial Creditor has not placed on record any Financial Contract or any Financial Agreement, in pursuance of which the loan was disbursed to the Corporate Debtor. In the present case, there is no financial contract which is seen on record in order to establish that the relationship between the Financial Creditor and the Corporate Debtor herein in order for the Applicant to qualify as a 'Financial Creditor' and in the absence of the same, the default as alleged by the Financial Creditor cannot be determined. Thus, in the absence of any 'Financial Contract' between the parties, we are constrained to dismiss this petition, however without any costs.(p7-10)