The case involves an appeal against an order dated 02.03.2020, where an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Appellant, was dismissed. The Appellant claimed to have provided Rs. 1,03,00,000/- as share application money to the Respondent, but no shares were allotted. The principal amount was repaid, but no interest was paid. The Appellant argued that the application under Section 7 should be maintainable.
Pramod Sharma, the Appellant, claimed to have given Rs. 1,03,00,000/- to Karanaya HeartCare Pvt. Ltd., the Respondent, as share application money. No shares were allotted in return. The principal amount of Rs. 1,03,00,000/- was subsequently repaid, but no interest was paid. The Appellant then filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency process against the Respondent, arguing that the unpaid interest constituted a financial debt. The Adjudicating Authority dismissed the application, noting that the matter had been previously settled amicably and that the share application money did not qualify as a financial debt under Section 5(8) of the Code. The Appellant then appealed this decision.
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Order dated 02.03.2020 by which Application…
Order dated 11th October, 2017 of the Hon'ble…
The case involves an appeal against an order dated 02.03.2020, where an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Appellant, was dismissed. The Appellant claimed to have provided Rs. 1,03,00,000/- as share application money to the Respondent, but no shares were allotted. The principal amount was repaid, but no interest was paid. The Appellant argued that the application under Section 7 should be maintainable.
Pramod Sharma, the Appellant, claimed to have given Rs. 1,03,00,000/- to Karanaya HeartCare Pvt. Ltd., the Respondent, as share application money. No shares were allotted in return. The principal amount of Rs. 1,03,00,000/- was subsequently repaid, but no interest was paid. The Appellant then filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency process against the Respondent, arguing that the unpaid interest constituted a financial debt. The Adjudicating Authority dismissed the application, noting that the matter had been previously settled amicably and that the share application money did not qualify as a financial debt under Section 5(8) of the Code. The Appellant then appealed this decision.
Order dated 02.03.2020 by which Application…
Order dated 11th October, 2017 of the Hon'ble…