N. Lingusamy vs Shriram City Union Finance Ltd. & Anr

N. Lingusamy ...Appellant

Vs

Shriram City Union Finance Ltd. & Anr. ....Respondents

Present: For Appellant: Mr. A, Venkata Subramanian and Mr. A. Leo George Rozario, Advocates. For Respondents: Mr. Brajesh Kumar Mishra, Advocate for R-1.

ORDER

10.12.2018: Admittedly, pursuant to an agreement, a consolidated sum of

Rs.1 Crore was paid to the Corporate Debtor and inspite of repeated notices the

Corporate Debtor failed to pay the amount with interest. For the said reason the

application under Section 7 was preferred by 'M/s Shriram City Union Finance

Ltd.' against 'M/s Thirrupathi Brothers Film Media Private Limited' (Corporate

Debtor) which has been admitted.

2. Initially, learned counsel for the Appellant sought time to settle the claim

with the Financial Creditor but having failed, we intend to hear the case on merit.

3. Learned counsel for the Appellant submitted that the Corporate Debtor

has no movable or immovable property and as such the Financial Creditor will

not gain anything, if Section 7 application is admitted. However, such ground

cannot be noticed for setting aside the order of admission as these are the issues -2-

which can be determined at the stage of resolution by the Committee of Creditors

and the Adjudicating Authority and on failure they may proceed with liquidation.

3. We find no merit in this appeal. It is accordingly dismissed. No costs.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice Bansi Lal Bhat] Member (Judicial)

am/uk

Company Appeal (AT) (Insolvency) No. 412 of 2018