R.P. Nagrath, Member - (1.) This petition is filed by the Financial Creditor, a company incorporated under the Companies Act, 1956 on 09.06.2008, to initiate corporate insolvency resolution process under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for short to be referred here-in-after as the 'Code'). The application is filed in Form No. 1 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the 'Rules'). The registered office of the respondent-corporate debtor is New Nogli, Rampur Bushahr, Shimla, Himachal Pradesh and therefore, the matter falls within the territorial jurisdiction of this Tribunal.
(2.) According to the petitioner, the respondent-Corporate Debtor borrowed Rs. 20,00,000/- from the petitioner by executing loan agreement dated 03.03.2015 to be returned on or before 31.03.2016. Annexure A-7 is the original loan agreement entered into between the parties. It was also agreed that in case of default, the respondent would be liable to pay interest @ 18% per annum compounded monthly. The loan amount of Rs. 20,00,000/- was disbursed to the respondent-Corporate Debtor by cheque No. 495137, dated 03.03.2015 drawn on Axis Bank Limited. It is contended that the respondent also executed the promissory note through its duly authorised representative Mr. T. Rajshekar, Director of the Corporate Debtor. Anyhow, the promissory note being unstamped is inadmissible and thus has to be ignored out of consideration.
(3.) The petitioner, however, also relied upon letter dated 20.01.2017 sent by the respondent company through its Managing Director, Mr. T. Rajshekar admitting the balance outstanding towards the loan to be Rs. 10,00,000/- along with interest, for which the respondent made a request to repay the same within a couple of months. The amount was not paid despite a reminder dated 12.04.2017 Annexure A-10 sent by the petitioner. The amount in default of the 'financial debt' is stated to be Rs. 24,87,370/- inclusive of interest.;