ARGUMENTS ADVANCED

1. Whether the application filed by financial creditors is maintainable under Section 7

of Insolvency and Bankruptcy Code, 2016.

It is humbly submitted before the respected Tribunal that the application filed by the
financial creditor i.e. The State Bank of Malta , Shawn and Mac Enterprises is not
maintainable under Section 7 of the IBC,2016 which states that “A financial creditor
either by itself or jointly with other financial creditors may file an application for
initiating corporate insolvency resolution process against a corporate debtor before the
Adjudicating Authority when a default has occurred” , because it is submitted that there
exists a dispute against the amount claimed by the financial creditor . Also, they have
misinterpreted the facts before the Hon’ble Tribunal as the default amount calculated by
the financial creditor is incorrect and contrary to the provision of CLA.

1. That the financial creditors has increased the debt amount.

It is submitted that the Ted Airway has took a loan amounting to Rs.3000crore from
the said financial creditors in 2005.However, the financial creditors has falsely
claimed an unreasonable and excessive amount of Rs.1400 crore without giving any
reasonable ground for such hike in the debt amount.’(Newfinds (India) V Vorion
Chemicals &Distillers (1970)46 Compcas 87(Mad.))

Also, it does not provide any calculative material which shows the reason behind the
hike in debt amount. Thus, the application is false in material facts, so the financial
creditor is liable for furnishing false information. (Section 75 of IBC, 2016).
The debt amount needed to be examined and hence the insolvency application under
Sec 7 of IBC, 2016 is not maintainable.

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1.2 That the CIRP will adversely affect the future of the growth of the company.
It is also submitted that the Ted Airways is one of the most prominent and huge privately owned
company in the Malta. So, it is basically a growth oriented company and at the mean time a
profit making company which includes a large interest of public as well. (Harinagar Sugar Mills
co.ltd. V M.W. Pradhan, AIR1966SC1707).
Hence, the company should be provided with a reasonable chance to revive its assets and thus
the CIRP should not be initiated against the Ted Airways.

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