The appellant, G. Sreevidhya, claiming to be a financial creditor, sought initiation of Corporate Insolvency Resolution Process (CIRP) against the respondent, M/s Karismaa Foundations Pvt. Ltd. (Corporate Debtor), for default in discharging a financial debt. The Adjudicating Authority (National Company Law Tribunal), Chennai, rejected the appellant's prayer, finding her to be an operational creditor and noting the existence of pending civil suits between the parties, which made the initiation of CIRP unwarranted. The appellant then filed an appeal against this order, arguing that it was legally unsustainable.
G. Sreevidhya (Appellant) and M/s. Karismaa Foundations Pvt. Ltd. (Respondent/Corporate Debtor) entered into an agreement on November 10, 2014, for the construction of a residential building at a cost of Rs.4 Crore. The Appellant paid an advance of Rs.1.5 Crore on December 4, 2014. The project was later abandoned due to market conditions. The Respondent retained the money received from the Appellant as a loan and started paying interest. The Respondent issued three cheques dated March 13, 2015, March 18, 2015, and April 30, 2015, each valuing Rs.5 Lakhs, repaying a sum of Rs.15 Lakhs. The Respondent issued a cheque dated June 30, 2015, for the balance loan amount of Rs.1.35 Crores, which bounced on September 22, 2015. The Respondent issued three cheques for Rs.25 Lakh
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The appellant, G. Sreevidhya, claiming to be a financial creditor, sought initiation of Corporate Insolvency Resolution Process (CIRP) against the respondent, M/s Karismaa Foundations Pvt. Ltd. (Corporate Debtor), for default in discharging a financial debt. The Adjudicating Authority (National Company Law Tribunal), Chennai, rejected the appellant's prayer, finding her to be an operational creditor and noting the existence of pending civil suits between the parties, which made the initiation of CIRP unwarranted. The appellant then filed an appeal against this order, arguing that it was legally unsustainable.
G. Sreevidhya (Appellant) and M/s. Karismaa Foundations Pvt. Ltd. (Respondent/Corporate Debtor) entered into an agreement on November 10, 2014, for the construction of a residential building at a cost of Rs.4 Crore. The Appellant paid an advance of Rs.1.5 Crore on December 4, 2014. The project was later abandoned due to market conditions. The Respondent retained the money received from the Appellant as a loan and started paying interest. The Respondent issued three cheques dated March 13, 2015, March 18, 2015, and April 30, 2015, each valuing Rs.5 Lakhs, repaying a sum of Rs.15 Lakhs. The Respondent issued a cheque dated June 30, 2015, for the balance loan amount of Rs.1.35 Crores, which bounced on September 22, 2015. The Respondent issued three cheques for Rs.25 Lakh
…Appellant and Respondent entered into an…
Appellant paid an…