IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 4157 OF 2022

SANDEEP GARG & ANR. … Appellant(s)

VERSUS

M/S DMI FINANCE PVT. LTD. & ANR. … Respondent(s)

O R D E R

This appeal has been filed raising the following questions of

law :-

“a)

Whether the Hon’ble NCLAT was justified in dismissing

the appeal despite there is no outstanding amount due

against the Corporate Debtor as on date of admission of

Section 7 Application?

b)

Whether the Hon’ble NCLAT failed to appreciate that

Financial Creditor already received the amount in full, in

fact, it received in excess to what was due and payable?

c)

Whether the Hon’ble NCLAT failed to appreciate that

mere issuance of legal notice does not establish a

‘default’ within the meaning of Section 3(12) of the Code?

d)

Whether the transactions for “ever-greening of loan

amount” by round tripping by Financial Creditor can be

regarded as ‘Financial Debt’? Is it justified to validate

an illegal transaction which is bad in the eyes of laws?

e)

Whether the Financial Creditor can deny Corporate

Debtor from giving proper account statements despite

repeated request?

f)

Whether the amount retained by Financial Creditor

will be treated as ‘Financial Debt’ under the IB Code? Is

it appropriate to consider the amount of Rs. 1,06,97,157/-

under the meaning of Section 5(8) without the any

disbursement of the same amount?

g)

Whether the transaction that lacks disbursement

against consideration for the time value of money will be

treated as ‘Financial Debt’ within Section 5(8) of the

Code?

h)

Whether round tripping of Rs. 5,52,52,843/- from one

account of Financial Creditor to another account controlled

by the Financial Creditor on the same day can be treated as

Financial Debt?

Digitally signed by

GULSHAN KUMAR

ARORA

Date: 2022.09.29

16:19:43 IST

Reason:

Signature Not Verified

2

i)

Whether the amount given by the Respondent No. 1 and

taken back on the same date will amount to ‘Financial

Debt’? Does the amount have the essential ingredients of a

‘Financial Debt as per the Section 5(8) of the Code?

j)

Whether the Respondent No. 1 beached the Rule 11(e)

of the Companies (Audit and Auditors) Rules, 2014?

k)

Whether the admitted claim of Financial Creditor that

has effective rate of interest along with the penal

interest for about 36% and above is justified as per the

law?

l)

Whether illegal transaction punishable under Section

477A of Indian Penal Code, 1860 and Section 447 of the

Companies Act, 2013 done for the purpose of merely creating

entries in the books of account of the Financial Creditor

can be treated as financial debt for purpose of initiation

of CIRP?

m)

Whether it is permissible to initiate the insolvency

proceedings against a company that has no staff, no

business, etc. except owning one valuable piece of land at

Noida?

n)

Whether the Financial Creditor is entitled to invoke

multiple remedies against a single Loan Amount resulting

into insolvency of multiple Group Companies despite the

companies are solvent, and the loan amount is miniscule as

compared to the Assets of the Companu?

o)

Whether insolvency proceedings can be used as a tool

for recovery?

p)

Whether a Financial Creditor can club a non-Financial

Debt amount with the loan amount and maintain an

application under Section 7 of the Code?

q)

Whether the Hon’ble NCLAT failed to appreciate the

fact that the admission of the Section 7 Application was

based on false assertion made by the Financial Creditor?

r)

Whether the Financial Creditor followed the

guidelines issued by RBI?

s)

Whether the Financial Creditor be permitted to

initiate CIRP against Corporate Debtor with fraudulent

purposes other than genuine resolution?

t)

Whether the insolvency proceedings can be used to

reduce the value of the Corporate Debtor b