creditor in
accordance with the provisions of this Act.
(2) Where any borrower, who is under a liability to
a secured creditor under a security ... executed in favour of the
debenture trustee."
8. The definition of 'borrower' given in SARFAESI Act under Section-2
(f) is wide
repay the debt in case of default by the original
borrower. The definition of the corporate guarantor relied
on by him in Section 5A cannot ... Counsel for the first Respondent contends
that M/s Mahaveer Construction (Borrower) had borrowed money against
the payment of interest from the First Respondent/Bank
judgment which
is as follows:-
"8. The definition of 'borrower given in SARFAESI Act
under Section-2 (f) is wide enough to include
judgment which
is as follows:-
"8. The definition of 'borrower given in SARFAESI Act
under Section-2 (f) is wide enough to include
debts which do not necessarily fall
in the definition of financial debt or operational. Money borrowed against
payment of interest comes within the definition financial ... debt. However, if
the money borrowed is not against payment of interest, under the
definition of financial debt, the core requirement is to find whether
must arise out of a claim due from a debtor/ borrower. The nature of
obligation and from where it springs is immaterial. The obligation ... transactions
which are included in the definition of 'financial debt'. It includes money
borrowed against the payment of interest. Clause (f) of Section
When default is committed by the Principal Borrower
the amount becomes due not only against the Principal Borrower but also
against the Corporate Guarantor, which ... Code, debt becomes due
both on Principal Borrower and the Guarantor, as noted above. The definition
of default under Section 3(12) in addition
money and includes money
borrowed against the payment of interest, as
per Section 5(8) (a) of the IBC. The definition of
'financial debt ... statute. Such definition may either be
restrictive or be extensive. Where the word is defined
to include something, the definition is prima facie
extensive
India Bulls) which claimed that the Corporate Debtor was one of
the borrower of the loan sanctioned on 31st March, 2016 and had
executed Term ... borrowed against payment of
interest nor indemnity or a guarantee as claimed
by the applicant and therefore, the same does
not fall within the definition
with effect from 6th June, 2018. In view of the
revised definition at Clause 8(f), any amount raised
from an allottee under a real ... amount having the commercial effect of a
borrowing and thus, is covered by the definition of
'Financial Debt' under the Code. Definition
