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2021 (9) TMI 1324 - NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCHMaintainability of application - applicability of time limitation - seeking condonation of Delay is maintainable in an Application filed under Sec7 of IBC? - section 5 of the Limitation Act - sufficient cause for condonation of delay present or not - HELD THAT:- In the present case, the total financial debt owed by the Corporate Debtor is ₹ 681.87 crores to the Applicant who is a custodian of public money and public interest is at stake, CBI proceedings were instituted pursuant to FIR bearing No. RC068206E0014 and also with an element of fraud and involvement of certain officers of Applicant/Petitioner. The petitioner had taken steps and filed recovery proceedings before DRT and thus there is no negligence no lack of bonafides on the part of the Applicant in exercise of its legal rights. This bench is bound to conclude that an application under Sec.7 is to be filed within three years as construed under Article 137 save and except in those cases where, in the facts of the case, sec.5 of Limitation Act may be applied to condone the delay in filing such application only on the ground that sufficient cause has been shown to condone such delay. It is well settled expression “sufficient Cause” is to receive liberal construction and that the judicial discretion is to be exercised with vigilance and circumspection. It is not the case of the Respondent/ Corporate Debtor that grave injustice would be occasioned if the delay is condoned, this Bench is adopting a liberal approach considering that the applicant is a public sector undertaking of Government of India involving public interest/public money. This proceedings under Section 7 is not a recovery proceedings but to initiate Corporate Insolvency Resolution Process of the Corporate Debtor and as such this Adjudicating Authority is exercising its judicial discretion in condoning the delay in filing the petition under Sec.7 as an exceptional case. On perusal of the documents filed by the Financial Creditor, is of the view that the Premier Limited and the Corporate Debtor defaulted in repaying the loan availed. The existence of debt and default is reasonably established by the Petitioner as a major constituent for admission of a Petition under Section 7 of the Code. Therefore, the Petition under sub-section (2) of Section 7 is taken as complete, accordingly this Bench hereby admits this Petition - Petition dismissed - moratorium declared.
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