Gautam Rai Rally and Priya Rally (Financial Creditors) filed a petition under Section 7 of the IBC to initiate CIRP against Manasavi Infracon Private Limited (Corporate Debtor).

The Financial Creditors claimed a default of Rs. 2.33 Crore, including unsecured loans and unpaid share value consideration.

The Corporate Debtor argued that the share value consideration was a personal obligation of the shareholders and that the Applicants did not qualify as Financial Creditors.

The Corporate Debtor claimed to have already paid Rs. 1,14,20,000/- out of the unsecured loan, leaving only Rs. 3,15,000/- unpaid.

The Adjudicating Authority noted that the share value consideration constituted a shareholder dispute and did not qualify as a financial debt under Section 5(8) of the Code.

Gautam Rai Rally and Priya Rally (Financial Creditors) filed a petition under Section 7 of the IBC to initiate CIRP against Manasavi Infracon Private Limited (Corporate Debtor).

The Financial Creditors claimed a default of Rs. 2.33 Crore, including unsecured loans and unpaid share value consideration.

The Corporate Debtor argued that the share value consideration was a personal obligation of the shareholders and that the Applicants did not qualify as Financial Creditors.

The Corporate Debtor claimed to have already paid Rs. 1,14,20,000/- out of the unsecured loan, leaving only Rs. 3,15,000/- unpaid.

The Adjudicating Authority noted that the share value consideration constituted a shareholder dispute and did not qualify as a financial debt under Section 5(8) of the Code.