JUDGEMENT

[Per: Shreesha Merla, Member (Technical)] 1. Aggrieved by the Impugned Order dated 18/07/2019, where by the Adjudicating Authority, National Company Law Tribunal, Chennai Bench has dismissed Section 7 Application namely, CP/946/IB/2018, filed by the Appellant, herein, seeking to initiate ‘CIRP’ against the Respondent Company, M/s Actioncor Consultants Pvt. Ltd. Preferred this Appeal under Section 61 of Comp. App. (AT) (Ins) No. 916/2019 Page 2 of 10 the ‘Insolvency and Bankruptcy Code, 2016’ (hereinafter referred to as ‘the code’).

2. The facts in brief are that the Respondent Company has been registered with ‘Board for Industrial and Financial Reconstruction’ (‘BIFR’) as a sick Industrial Company, vide Case No. 75 of 2006. While so, Mr. Coimbatore Krishnan Anantha Subramanian (hereinafter referred to as ‘Mr. Subramanian’), approached Mr. Khodadad Khushroo Moradian (hereinafter referred to as ‘Mr. KKM’) for loan of a sum of Rs.1,24,00,000/-, as it would be sufficient to pay off the debt of the Secured Creditors of the Company and consequently Mr.

Subramanian would initiate steps to deregister it from the ‘BIFR’. Between 22/11/2010 to 18/07/2011, there were numerous e-mail communications between Mr. KKM and Mr. Subramanian and it is averred that the intention of the Parties was that a loan was to be provided by the Appellant for revival of the Respondent Company. On 14/07/2010, an ‘Investment agreement’ was entered into between Mr. KKM and Mr. Subramanian and Mrs. Sujatha Ananth, being the Managing Director and Director of the Respondent Company, whereby, the Appellant agreed to disburse Rs. 1,40,00,000. On 16/08/2010, an ‘Addendum Agreement’ to the ‘Investment Agreement’, dated 14/07/2010 was entered into between the same parties and the enforcement of the security was made contingent to the fulfilment of the Addendum Agreement. On 22/07/2010, Mrs. Sujatha Ananth had executed a ‘Memorandum of Deposit of Title Deed’ wherein, she had agreed to deposit the Title Deeds to one Mr. Kum Kum Sen, Comp. App. (AT) (Ins) No. 916/2019 Page 3 of 10 Advocate who was entitled to receive the same on behalf of the Appellant. It is averred that on 13/09/2010, Mrs. Sujatha vide a ‘Registered Deed of Mortgage’, pledged her property to an extent of ¼ th acre and the Respondent had issued an Investment Receipt in its letterhead, duly signed by Mr. Subramanian and Mrs. Sujatha in their capacities as Managing Director and Director of the Company.

On 29/09/2010, M/s. BFI Factoring Services Limited, vide a letter to Mr. Subramanian confirmed the receipt of the Cheque for a sum of Rs. 65,00,000/- as full and final settlement of the dues owed by the Respondent Company to ‘Asset Reconstruction Company India Limited’ (“ARCIL”). On 30/08/2011, an Affidavit was filed by Mr. Subramanian, before the ‘BIFR’ wherein he categorically stated that the Appellant had provided a loan to the Respondent. The Company continued to be registered under ‘BIFR’, till it was abolished on 01/12/2016. The Company made no efforts to repay the loan and committed a Default. It is averred that despite a Legal Notice issued on 05/12/2017, demanding the payment of Rs.1,40,00,000/- and a sum of Rs. 4,23,17,951/- towards interest calculated from 1/12/2010 to 30/11/2017, at interest of 22% p.a., there was no payment made by the Respondent Company except for a vague Reply, subsequent to which the Appellant filed a Section 7 Application on 18/07/2018, before the Adjudicating Authority, National Company Law Tribunal, Chennai Bench.

Comp. App. (AT) (Ins) No. 916/2019 Page 4 of 10 3. The Learned Counsel for the Appellant contended that the Managing Director and Director of the Corporate Debtor Company had approac