Case Law Details
Kotak Mahindra Bank Ltd. Vs Hybro Foods Private Limited (NCLT Mumbai)
NCLT Mumbai held that petition under section 7 of Insolvency and Bankruptcy Code (IBC) duly admissible, as two essential qualification i.e. ‘debt’ and ‘default’ existed.
Facts- This Company Petition is filed by Kotak Mahindra Bank Ltd (Financial Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Hybro Foods Private Limited, (Corporate Debtor) alleging that the Corporate debtor committed default in making payment to the Financial Creditor. This petition has been filed by invoking the provisions of Section 7 Insolvency and bankruptcy code read with Rule 4 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for a Resolution of Financial Debt of Rs. 9,40,34,306.69/- inclusive of interest.
Conclusion- With regard to the next contention raised by the Counsel for the Corporate Debtor that the documents Relied upon by the Petitioner in support of its debt are insufficiently stamped. In this regard, the Ld. Counsel for the Financial Creditor has stated that the Corporate Debtor has not disputed the existence of loans. In furtherance the Corporate Debtor has also availed the said loan facility advanced by the original Lender So far as the objection with regard to the loan documents not been sufficiently stamped, it is notable that the question of insufficiently stamped loan documents is not relevant while adjudicating upon the admissibility of a Petition under Section 7 of the code.
Held that the nature of Debt is a “Financial Debt” as defined under section 5(8) of the Code. It has also been established that there is a “Default” as defined under section 3(12) of the Code on the part of the Debtor. The two essential qualifications, i.e., existence of ‘debt’ and ‘default’, for admission of a petition under Section 7 of the I&B Code, have been met in this case.
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