M.M.Kumar, President - (1.) This is an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with a prayer to initiate corporate insolvency resolution process against respondent-'Corporate Debtor'.
(2.) The facts in brief are that the 'Financial Creditor' advanced unsecured loan of US Dollar 30,000 to the 'Corporate Debtor' on 18.06.2014. In that regard, the parties executed 'Unsecured Loan Agreement' dated 18.06.2014 under clause 4 read with clause 3 of Schedule I appended to the loan agreement. The 'Corporate Debtor' was to pay the borrowed amount within a period of three months alongwith interest @ 15% per annum. The 'Corporate Debtor' was thus obliged to repay the loan by 17.09.2014. The 'Corporate Debtor' failed to do so, despite various reminders sent by the 'Financial Creditor. On 15.09.2014, Mr. Shalabh Srivastava, Chief Executive Officer of the 'Corporate Debtor' sent an email to the Financial Creditor' and promised to repay the loan amount by October, 2014. Accordingly, extension was granted in good faith. On 29.01.2015, the Financial Creditor' tried to contact the Chief Executive Officer, Mr. Shalabh Srivastava, who cited his marital discord and business setbacks as reasons for him not responding and he then promised to repay the loan by March, 2015. The 'Financial Creditor' again extended the time and even the promises made at Hongkong on 18.05.2015 went in vain. There is correspondence/promises for payment from 08.06.2015 to June, 2016. On 07.06.2016. the 'Financial Creditor' sent a notice dated 07.06.2016 which was duly received by the 'Corporate Debtor' on 08.06.2016.
(3.) The 'Financial Creditor' first filed a Company Petition before the Hon'ble High Court but on account of technical defect pointed out by the Registry, the Company Petition was withdrawn. Then on 14.09.2016, the 'Financial Creditor' sent a notice under Section 434 of the Companies Act, 1956 requesting the 'Corporate Debtor' to pay the entire outstanding amount with interest within three weeks, which was duly received by the 'Corporate Debtor'on 15.09.2016.;