February 2021, was within limitation. Thus, on consideration of RA-01/2023 the captioned Application was restored to its original position. The Hon’ble NCLAT has already recorded a finding that the Balance Sheet of the CD for the F.Y. 2019 reflects the debt amount, thus it is not open for us to take a view contrary to the one taken by Hon’ble NCLAT. Nevertheless, for our satisfaction, we made a reference to the said Balance Sheet again and a perusal of the same reflects the short-term borrowing by the CD from RN Khemka Enterprises Pvt. Ltd. and Satsai Finlease Pvt. Ltd. i.e., the Applicants herein. When in the Application filed by it, the Applicants have espoused that the CD had deducted TDS on the interest payable to the Applicants on the deposits made by the Applicants with it, in rejoinder they have pleaded that the plea raised by the Respondent regarding non-compliance of Section 45(1)(c) is not tenable for the simple reason that the Applicants are not the NBFC and they could only deposit the amount of default with Respondent as ICD. In our considered view, if the Applicants have flouted any of the provisions of the RBI Act, they are liable to face action in accordance with law. For the purpose of consideration of an Application filed under Section 7(1) of IBC, 2016, what we need to see is that a default has occurred and the application is complete. At the time of default, the threshold limit was Rs. 1 Lakh. The Balance Sheet of the CD (ibid) reflects the defaulted amount more than that of the threshold amount. The financial debt means a debt disbursed against the consideration for the time value of money. In the present case, the debt given by the Applicants to CD was for interest i.e., the time value of money. The Financial Creditor is a person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or
