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2017 (4) TMI 1267 - Tri - Insolvency and BankruptcyCorporate insolvency procedure - existence of default from the records of an information utility or on the basis of other evidence furnished by the financial creditor as per sub- section (3) of Section 7 of the Code - whether the Corporate Debtor has defaulted In making the payment? - Held that:- The petitioner Bank had already issued a notice dated 20 08.2015 {Annexure R-I) attached with the objections, for initiating the proceedings for declaring the corporate debtor as wilful defaulter. For that matter the applicant Bank has already filed OA before the DRT. Learned senior counsel for the corporate debtor contended that the present petition to declare the respondent/corporate debtor as insolvent would be setting up an inconsistent case. We have already discussed above that the provisions of the Code have overriding effect over other laws and being the latest law on the subject, the proceedings before the DRT will not debar the right of the financial creditor to file application under Section 7 of the Code. . The next contention was that by taking over of custody of the premises of the corporate debtor, it will seriously prejudice the respondent/corporate debtor in pursuing the criminal case already pending on a private complaint against the Bank official and others as they could tamper with the evidence. We find that the insolvency professional has an onerous duty not to act an agent of the applicant, but he has to abide by the Code of Conduct and follow the norms framed by the Board. He has to maintain the high ethical standards. While taking in custody the premises and the articles lying therein. we can direct the IRP to prepare an inventory of all the articles, which are lying there and to keep them in safe custody. wherever necessery and while preparing the inventory of articles, one of the authorised representative of the corporate debtor, can be permitted to associate himself in the said process but such a person would be duty bound to attest the inventory as a witness. The petition, therefore is admitted declaring the moratorium
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