M.RAVI Vs. K.MURALI

JUDGEMENT

(1.) This Insolvency Petition has been filed by the petitioning Creditor. According to the petitioning Creditor, the Debtors borrowed a sum of Rs.1,50,000.00 from the Creditor, on 18/4/2017, and they had executed a Promissory Note, in favour of the petitioning Creditor, with a promise to repay the same, on demand, together with interest at the rate of 18% per annum. Subsequently, when the petitioning Creditor made the demand, the said amount was not repaid by the Debtors. On 21/9/2018, the Debtors informed through a letter, addressed to the petitioning Creditor that, they are not in a position to repay the money, rupee per rupee, to the petitioning Creditor, as they were heavily indebted to various Creditors. They also stated that, they have informed all the Creditors about their inability to repay the debts, which amounts to suspension of payment.

(2.) Therefore, the petitioning Creditor had sent a legal notice on 4/10/2018. Having received the same, the Debtors have issued a reply, through their counsel, on 12/10/2018, whereby, they had stated that, the Debtors have already informed the petitioning Creditor that, they cannot repay the amount to the petitioning Creditor.

(3.) Therefore, the petitioning Creditor has filed this petition, as the Debtors have committed an act of Insolvency, within the meaning of Sec. 9(1)(g) of the Presidency Towns Insolvency Act III of 1909, commencing from the said date i.e. 21/9/2018, which is evidenced and confirmed by the reply notice by the Debtors, through their counsel, on 12/10/2018.