Shri Venkata Ramakrishna Badarinath Nandula and Shri Charan Singh

Case Citation: (2023) ibclaw.in 266 NCLT

The Adjudicating Authority held that a sum of Rs. one crore has been deposited by the Financial Creditor with the Corporate Debtor even though towards purchase of shares as the shares were not allotted, it was agreed by the Corporate Debtor to refund the said amount in 12 quarterly instalments without interest. Therefore, the allotment money has been converted into a debt by the parties as is evident from the contest put forth before us. Since the said debt is not repaid the default in repayment of the same stands established. Therefore, as existence of debt and its default has been established the petition is liable to be allowed.

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