Holy Heights Infrastructures Private ... vs K.V. Foundations India Limited

Holy Heights Infrastructures Pvt. Ltd. ...Appellant

Versus

K.V. Foundations India Ltd. ...Respondent

Present: For Appellant: Ms. Pallavi Parmai, Advocate For Respondent: Mr. Vibhor Garg, Keshav Tiwari, Advocates for R-1 Mr. Karan Gandhi, Advocate for RP

ORDER

10.04.2023: Heard Learned Counsel for the Appellant.

2. This Appeal has been filed against the Order dated 22nd February, 2023

by which Section 7 Application of I&B Code, 2016 has been admitted. The

Adjudicating Authority by the Impugned Order has found the amount

disbursed and reflected in the balance sheets as unsecured loan. The

Adjudicating Authority admitted Section 7 Application after recording finding

and considering the submissions made in paragraph 26. The categorical

submission recorded that default in payment of the financial debt has been

proved which is above the threshold limit.

3. When the Appeal was taken for consideration, the Appellant sought

adjournment to take steps to settle the matter with the Financial Creditor.

Today when the Appeal is taken, Learned Counsel for the Respondent

submitted that offer made by Appellant is not acceptable. -2-

4. Learned Counsel for the Appellant challenging the Order contends that

the Appellant is ready to pay the simple interest at the rate of 12% whereas

the Respondent has been demanding 12% compound interest.

5. The question as to whether the Financial Creditor is entitled for simple

interest or compound interest is the question which shall be looked into by

the Resolution Professional when the claims are collated. The said issue is not

to be decided at the time of admitting the Section 7 Application at the stage

when the debt and default has to be proved. No error has been committed by

the Adjudicating Authority in admitting Section 7 Application. We make it

clear that the question as to whether the Financial Creditor are entitled for

simple interest or compound interest, the Resolution Professional after

collating the claim and considering the other materials may form the opinion.

Anyone aggrieved with the said opinion, is at liberty to approach the

adjudicating authority for appropriate relief.

With these observations, we dismiss the Appeal.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

Basant/nn

Company Appeal (AT) (Insolvency) No. 422/2023