The appeal was filed against an order dated March 13, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), Special Bench, New Delhi, in CP No.(IB)-512(ND)/2017. The Adjudicating Authority had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent against ‘M/s Shree Siyaram Automations Pvt. Ltd.’, initiated moratorium, and appointed an Interim Resolution Professional.
The Appellant filed an appeal against the Adjudicating Authority's order, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent. The Corporate Debtor invested Rs. 80 crore, while the Respondent invested Rs. 90 lakh for purchasing land. The Appellant argued that the Respondent does not qualify as a ‘Financial Creditor’ under Section 5(7)&(8) of the I&B Code. The Respondent claimed to be a ‘Financial Creditor’ due to investing money for the time value of money. Interest was payable on the Respondent's investment, and a sum of Rs. 9 lakh was defaulted. The interest payment of Rs. 6,62,030/- was received on 06.05.2015 after TDS deduction. The Adjudicating Authority dealt with these facts in detail.
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The Adjudicating Authority (National Company…
The Respondent received…
The appeal was filed against an order dated March 13, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), Special Bench, New Delhi, in CP No.(IB)-512(ND)/2017. The Adjudicating Authority had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent against ‘M/s Shree Siyaram Automations Pvt. Ltd.’, initiated moratorium, and appointed an Interim Resolution Professional.
The Appellant filed an appeal against the Adjudicating Authority's order, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent. The Corporate Debtor invested Rs. 80 crore, while the Respondent invested Rs. 90 lakh for purchasing land. The Appellant argued that the Respondent does not qualify as a ‘Financial Creditor’ under Section 5(7)&(8) of the I&B Code. The Respondent claimed to be a ‘Financial Creditor’ due to investing money for the time value of money. Interest was payable on the Respondent's investment, and a sum of Rs. 9 lakh was defaulted. The interest payment of Rs. 6,62,030/- was received on 06.05.2015 after TDS deduction. The Adjudicating Authority dealt with these facts in detail.
The Adjudicating Authority (National Company…
The Respondent received…