The appeal challenges the Adjudicating Authority's order dated 29.07.2022, which rejected the Appellant's Section 7 application. The Adjudicating Authority held that the Financial Creditor failed to demonstrate the nature of the transaction and that the amount paid qualified as a Financial Debt. The Appellant claims an unsecured loan was advanced to the Corporate Debtor, who deducted TDS on the interest. The Adjudicating Authority directed the applicant to demonstrate that income tax for the Assessment Year 2018-19 has taken in to account the TDS deducted was adjusted and credited. The Adjudicating Authority heard the parties and by impugned order rejected the application.
M/s Agarwal Polysacks Limited (Appellant) sought financial assistance from M/s K. K. Agro Foods and Storage Limited (Corporate Debtor). The Appellant agreed to grant an unsecured term loan of Rs. 75 Lakhs to the Corporate Debtor. The Appellant disbursed Rs. 50 Lakhs on 2017-08-23, Rs. 5 Lakhs, and Rs. 20 Lakhs on 2017-09-28 via RTGS. The parties agreed that the unsecured term loan would be repaid on demand. The Corporate Debtor deducted tax on the interest amount in FY 2017-18, totaling Rs. 52,250 until 2018-03-31. The Appellant requested a statement of account from 2018-04-01 to 2019-03-21 via email on 2019-04-12. The Appellant sent a letter on 2019-04-17 to the Corporate Debtor for repayment of the unsecured loan with interest within two months. The Appellant's Board
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Appellant disbursed Rs.…
Appellant disbursed Rs.…
The appeal challenges the Adjudicating Authority's order dated 29.07.2022, which rejected the Appellant's Section 7 application. The Adjudicating Authority held that the Financial Creditor failed to demonstrate the nature of the transaction and that the amount paid qualified as a Financial Debt. The Appellant claims an unsecured loan was advanced to the Corporate Debtor, who deducted TDS on the interest. The Adjudicating Authority directed the applicant to demonstrate that income tax for the Assessment Year 2018-19 has taken in to account the TDS deducted was adjusted and credited. The Adjudicating Authority heard the parties and by impugned order rejected the application.
M/s Agarwal Polysacks Limited (Appellant) sought financial assistance from M/s K. K. Agro Foods and Storage Limited (Corporate Debtor). The Appellant agreed to grant an unsecured term loan of Rs. 75 Lakhs to the Corporate Debtor. The Appellant disbursed Rs. 50 Lakhs on 2017-08-23, Rs. 5 Lakhs, and Rs. 20 Lakhs on 2017-09-28 via RTGS. The parties agreed that the unsecured term loan would be repaid on demand. The Corporate Debtor deducted tax on the interest amount in FY 2017-18, totaling Rs. 52,250 until 2018-03-31. The Appellant requested a statement of account from 2018-04-01 to 2019-03-21 via email on 2019-04-12. The Appellant sent a letter on 2019-04-17 to the Corporate Debtor for repayment of the unsecured loan with interest within two months. The Appellant's Board
…Appellant disbursed Rs.…
Appellant disbursed Rs.…