BRAVO BUILDERS PVT LTD Vs. COTTSTOWN FASHIONS LTD

JUDGEMENT

(1.) It is Company Petition filed u/s 7 of Insolvency and Bankruptcy Code, by the Petitioner/Bravo Builders Pvt. Ltd. against the Corporate Debtor/Cottstown Fashions Ltd., on the ground that the Corporate Debtor borrowed a sum of Rs. 1,80,00,000/- on 25.07.2014, thereafter this Corporate Debtor having failed to repay the same, the Petitioner filed this Petition to initiate insolvency resolution process against this debtor.

(2.) The brief facts of the Petitioner's case is that this Corporate Debtor in the year 2014 sought short-term financial support from the Financial Creditor for expansion of its business, on being agreed to the request made by the Corporate Debtor, the Petitioner provided a short-term loan of f 1,80,00,000 by transferring the said amount in favour of the Corporate Debtor vide RTGS on 25.07.2014, but soon thereafter, on 13.09.2014, this Corporate Debtor executed Promissory Note in favour of the Financial Creditor through its director Mr. Saurabh Pradhan agreeing to repay total sum of Rs. 2,70,00,000/- including a sum of Rs. 90,00,000/- towards profit on or before 24.09.2014. It has also been mentioned that this Rs. 90,00,000/- was included in the Promissory Note as money payable towards services rendered by the Financial Creditor to the Corporate Debtor over and above the principal sum of Rs. 1,80,00,000/- given as loan. In addition to the Promissory Note executed on 13.09.2014, this Corporate Debtor, before executing the aforesaid Promissory Note, also issued a cheque bearing No. 298175 dated 28.08.2014 drawn on Yes Bank for an amount of Rs. 2,25,00,000/-.

(3.) The Petitioner added to the material facts that since Corporate Debtor specifically requested the Financial Creditor to await confirmation to present the cheque given for Rs. 2,785,00,000/-. As no confirmation had come immediately, the Financial Creditor kept on reminding the Corporate Debtor seeking confirmation for encashment of the aforesaid cheque. Finally, the Corporate Debtor instead of giving confirmation for encashment of the aforesaid cheque, again issued three cheques on 24.09.2014 for amounts as mentioned below: <FRM>JUDGEMENT_41_LAWS(NCLT)1_2018_1.html</FRM>