Ina Malhotra, Member - (1.) The petitioner has invoked the provisions of Section 7 of the Insolvency Bankruptcy Code, 2016 (hereinafter referred to as Code for triggering Resolution Process against the Respondent/Corporate Debtor on account of its inability to pay their debt.
(2.) The Brief background of the case on which the petitioner seeks relief as a Financial Creditor is primarily a debt paid for and on behalf of the Corporate Debtor to Punjab National Bank.
(3.) The petitioners who were guarantors for the loans availed by the Corporate Debtor from Punjab National Bank had mortgaged their immovable property. To redeem the same and reduce the liability of the Corporate Debtor in their loan account, they paid a sum of Rs. 1.05 crores on 21.07.2017. Accordingly, they became entitled to recover the same from the Corporate Debtor. As the Corporate Debtor failed to liquidate this liability, they seek to invoke the proceedings as Financial Creditors against the respondent/Corporate Debtor. To evidence the aforesaid transaction, Ld. Counsel has drawn our attention to the photocopy of cheque No. 502671, dated 21.07.2014, in favour of the Corporate debtor and has relied upon the Financial Creditor's bank statement confirming remittance there under to the Corporate Debtor's account on 21.07.2014. The factum of having paid this amount for liquidating' the dues of the Corporate Debtor is also recorded in the order dated 21.01.2015 by the Hon'ble Debt Recovery Tribunal in OA No. 456/2013 (Bank of Maharashtra V. Sumit Aviation). The Financial Creditors also acknowledge the receipt of Rs. 27 lakhs paid by the Corporate Debtor towards reduction of this liability.;