Pradip Kumar Bajaj- Suspended Director ... vs Paragon Finance Limited And Others
- CitationComp. App. (AT) (Ins.) No. 87 of 2022
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning rests on a single principle: where a financial creditor has recalled a loan, the entire amount becomes due on the date of recall, so an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed after that recall is not premature merely because the loan was not repayable in full on the date of the original disbursal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mr. Pradip Kumar Bajaj (Suspended Director of ....Appellant Mohan Motor Dealers Private Limited) Vs. Paragon Finance Ltd. & Ors. ...Respondents For Appellant: Mr. Gaurav H Sethi, Mr. Sayantan Bose, Mr. Jishnu Chowdhury, Mr. Ritoban Sarkar, Ms. Madhurima Das, Advocates. For Respondents:
ORDER
(Through Virtual Mode)
01.02.2022: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the order dated 03.08.2021 passed
by the Adjudicating Authority (National Company Law Tribunal), Kolkata
Bench, Kolkata in C.P. 1685 of 2019 by which order Application filed under
Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Code" for short) by
the Financial Creditor has been admitted.
3. Learned Counsel for the Appellant submits that Application filed by
the Financial Creditor was pre-mature since the loan had not become due by
the time on the date when Application was filed.
4. However, there is no dispute to the fact that loan of Rs. 25 Lakhs was
taken on 15.06.2018. The Adjudicating Authority in its order has already
referred to loan recall notice dated 02.08.2019 by which loan was recalled. 2
When the loan was recalled, the entire amount become due. The submission
of the Appellant that Application was premature has no merit. We do not find
any error in the order passed by the Adjudicating Authority. The Appeal is
dismissed.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical) Anjali/nn
Comp. App. (AT) (Ins.) No. 87 of 2022
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