Vijay Rochlani, a Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shantai Exim Ltd., the Corporate Debtor, for a claimed 'financial debt' of ₹50,00,000/-. The Corporate Debtor allegedly failed to repay the outstanding debt with interest as of 11.10.2017, even after a legal notice was served. The Corporate Debtor argued that the amount was not a loan but a family advance related to a divorce petition involving the Petitioner's wife, who is the sister of the Corporate Debtor's directors. The Petitioner contended that the payment of interest was evidenced by handwritten workings from the Corporate Debtor's accounts department and that the amount was received as 'Short Term Borrowing'.
Vijay Rochlani, acting as a Financial Creditor, provided financial assistance of ₹55,00,000/- to Shantai Exim Ltd., the Corporate Debtor, in December 2016. The Corporate Debtor assured repayment by March 2017 and repaid ₹5,00,000/- in mid-March 2017, promising to pay the balance by December 2017. The Corporate Debtor offered 12% p.a. interest on the remaining ₹50,00,000/-, paying interest for three quarters until June 2017 after TDS deduction. After June 2017, the Corporate Debtor ceased both interest and principal payments. A legal notice was sent on 11.10.2017, but no response or payment was received. The Corporate Debtor claimed the amount was not a loan but a family advance related to the divorce of the Petitioner's wife, who is the sister of the Corporate Debtor's
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Vijay Rochlani, a Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shantai Exim Ltd., the Corporate Debtor, for a claimed 'financial debt' of ₹50,00,000/-. The Corporate Debtor allegedly failed to repay the outstanding debt with interest as of 11.10.2017, even after a legal notice was served. The Corporate Debtor argued that the amount was not a loan but a family advance related to a divorce petition involving the Petitioner's wife, who is the sister of the Corporate Debtor's directors. The Petitioner contended that the payment of interest was evidenced by handwritten workings from the Corporate Debtor's accounts department and that the amount was received as 'Short Term Borrowing'.
Vijay Rochlani, acting as a Financial Creditor, provided financial assistance of ₹55,00,000/- to Shantai Exim Ltd., the Corporate Debtor, in December 2016. The Corporate Debtor assured repayment by March 2017 and repaid ₹5,00,000/- in mid-March 2017, promising to pay the balance by December 2017. The Corporate Debtor offered 12% p.a. interest on the remaining ₹50,00,000/-, paying interest for three quarters until June 2017 after TDS deduction. After June 2017, the Corporate Debtor ceased both interest and principal payments. A legal notice was sent on 11.10.2017, but no response or payment was received. The Corporate Debtor claimed the amount was not a loan but a family advance related to the divorce of the Petitioner's wife, who is the sister of the Corporate Debtor's
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The Corporate Debtor…