Arichwal Trading Co. Private Limited vs Vinayak Rail Track (India) Private ...

Arichwal Trading Co. Pvt. Ltd. ...Appellant

Versus

Vinayak Rail Track (India) Pvt. Ltd. ...Respondent

Present: For Appellant: Mr. Abhay K. Das, Advocate with Mr. A. K. Dubey, PCS. For Respondent: Mr. Abhijeet Sinha, Ms. Neha Sharma, Mr. Aditya Shukla and Ms. Heena Kochar, Advocates.

ORDER

21.11.2022: Heard learned counsel for the parties. This Appeal has been

filed against the order dated 26.08.2022 by which order Section 7 application

filed by the Appellant has been rejected.

2. An Inter-Corporate Deposit was given by three companies including the

Appellant of a total amount of Rs.95 Lakhs. The other two companies merged

with the Appellant on 06.01.2020. Application was filed by the Appellant

under Section 7 in the year 2021 claiming an amount of Rs.1,59,03,068/-. In

the Section 9 application the Appellant claimed the amount outstanding

towards interest which is clear from Part IV of the application. The

Adjudicating Authority refused to admit the application observing that the

Principal Amount having been paid petition is not maintainable.

Cont'd.../ -2-

3. Learned counsel for the Appellant challenging the order contends that

the amount of interest is part of the debt and it cannot be separated from the

total amount claimed, hence, application ought to have been admitted. He

further submits that the Corporate Debtor has subsequently given cheques

towards the interest which were dishonoured and proceedings under Section

138 of the NI Act has already been initiated.

4. Learned counsel for the Respondent submits that the payment to the

Financial Creditor have been made against the Inter-Corporate Deposit of

Rs.95 Lakhs of Rs.1.06 Crores according to the documents submitted by the

Appellant itself. It is submitted that issuance of cheques was not ever

admitted. It is submitted that the Adjudicating Authority has rightly in

exercise of its jurisdiction in not admitting the application.

5. We have heard submissions of learned counsel for the parties and

perused the record.

6. The Inter-Corporate Deposit of Rs.95 Lakhs was made in the year 2012-

13. There is no dispute between the parties that Inter-Corporate Deposit of

Rs.95 Lakhs stood paid. The question is only with regard to outstanding

interest for which according to the Appellant Section 7 application was filed.

In the facts of the present case, where Inter-Corporate Deposit itself was

liquidated, we are of the view that the Adjudicating Authority did not commit

any error in not admitting Section 7 application. Appellant has already

Company Appeal (AT) (Insolvency) No. 1381 of 2022 -3-

initiated proceedings under Section 138 of the NI Act and if so advised may

resort to remedy, if any available, in accordance with law. However, present

is not a case where this appeal may be entertained. There is no merit in the

Appeal. Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Dr. Alok Srivastava] Member (Technical)

[Barun Mitra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No. 1381 of 2022