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2017 (6) TMI 1169 - Tri - Insolvency and BankruptcyCorporate insolvency process - initiation of the proceedings by the corporate debtor - Held that:- The admission of the petition would have a serious impact on the financial creditors who have already set the wheel in motion to secure their debts. The apprehension, or rather certainty, of taking away the physical possession of their valuable properties and being dispossessed appears to be the motivation for the corporate debtor to approach this Tribunal under the Code, rather than ensuring resolution of their debts or seeking a turnaround of the corporate business. To stay the repossession of immovable properties by Banks by resorting to the provision of section 10 of the Code, and the consequential effect of the moratorium which has to follow, would clearly be an abuse of the process of law to which this Bench certainly cannot be a party to. It is not sufficient just to meet the requirements under section 10 of the Code which would automatically entitle the corporate debtor to initiate such proceedings. Surely it could never have been the intention of the Legislature to provide relief to defaulters of the Banks by taking refuge under this Code. The Adjudicating Authority has to consider the merits of each case and see beyond what meets the eye, and only after due application of mind, consider the case on its merits. In the facts of the case, this Bench does not deem it just, fit and proper to admit the petition as initiation of the proceedings by the corporate debtor shall cause irreparable loss and injury to the Banks, and an uncalled for protection to the borrowers and various guarantors. Resultantly, the prayer for triggering the resolution process is rejected. Petition stands dismissed.
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