Supplementary Affidavit filed by Kedar Nath Bansal, CFO of Respondent No.1 and referred to agreement dated 2nd April, 2013 between Nagreeka Exports Limited and the Corporate Debtor, which was earlier known as Saraf Impex Pvt. Ltd. He further submitted that in Para ‘4’ of the Agreement, on page 13 of the Supplementary Affidavit, it is agreed between the parties “The First Party shall provide necessary finance to the second party for procuring materials from the domestic market and for effecting/ executing shipment in the name of First Party in terms of the export orders to be secured by the Second Party in favour of the First Party and in case of failure on the part of supplier to supply the materials the second party shall remain responsible for the recovery of entire amount from the supplier and the Second Party shall make good the loss which may be suffered by the first party in the matter”. He submitted that the Corporate Debtor wanted to sell certain goods or export certain goods and they did not have the funds to do. So, the Respondent No.1 being financer, financed Corporate Debtor and on the basis of that finance provided by Respondent No.1 they were able to secure the material and they were able to export, this was the basically Agreement which was available. It is further argued that there was dispute between the parties and the matter was referred to arbitration and later on the Arbitration Award was passed. When the matter was pending in the arbitration, the parties entered into the Terms of Settlement. Para 6 of the Terms of Settlement is reproduced as under:-
