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Judgment
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.
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.
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.
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.
We have heard submissions of learned counsel for the parties and perused the record.
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 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.