BELYKBRADSTARK XOXO

 Issue 1- Special Leave Petition (Nearly done)

Issue 2. Whether the Common Loan Agreement was an investment, and not a loan?

2.1 Shawn and Mac filed the application in the capacity of an Operational Creditor and not a
Financial Creditor.

2.2. The Common Loan Agreement was registered under SARFAESI Act.
 According to Sec 13(4), the securities must have been auctioned for the recovery of debt.
Since this was not done by the financial creditors, it shows their intent of an operational
creditor.

2.3. The possession of shares with the intention taking risk.

Issue 3- Whether the applications filed in NCLT and NCLAT were maintainable?

3.1 NCLT had no jurisdiction over the issue.

 A bank cannot file a case against its own.

 The application is maintainable neither u/s 7 nor u/s 9.
 The intention to approach NCLT after disposal of shares remains exploitative.

3.2 The existence of a dispute prior to the proceedings in NCLT and NCLAT.

 Period of 10 days was not granted for Ted airways to reply to the demand notice. Because
this required time was not given to Ted Airways, therefore, NCLT should reject the
application.
 Ted airways replied and claimed that there existed a dispute over the amount of debt
claimed by the debtor. Since there existed a dispute prior to the proceedings, therefore,
NCLT and NCLAT are bound to reject the applications.

3.3 Doubts against the credibility of the company.

 There existed 1% interest on non-creation of security. Since the financial loan was
secured in nature, and the fact, that this security was never withdrawn by Ted airways,
shows the financial stability of the company.
 The company had taken a loan of Rs 1,000 Crores from Operational Creditor. There was
no case filed by the operational creditor, which shows their faith that the company is
financial stable.

3.4 Dispute over the debt of the financial creditors: converted shares and property into debt
equity.

3.5 (Backup) The value of the properties kept as securities by the SBM is the amount of loan.
Above that, the amount is to be classified as investment.