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2019 (2) TMI 1621 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - Corporate Debtor - default in repayment of borrowed amount - Section 7 of the I & BC, 2016 - HELD THAT:- On examination of sequence of events, ex facie it is evident that the Petitioner/ Financial Creditor had made Fixed Deposits with the Financial Debtor and also entered into an MoU in June, 2014 with the Financial Debtor. According to this MoU, the Corporate Debtor had assured the Financial Creditor that all amounts drawn down from the bank would be repaid to the Bank by the Corporate Debtor. It was also agreed that the Corporate Debtor would pay the Financial Creditor an interest of 7% per annum simple interest on all amounts availed by the Corporate Debtor from the Bank. The Corporate Debtor has not denied the existence of a MoU with the Financial Creditor. The Debt is to be qualified as “Financial Debt” as defined under section 5(8) of Insolvency & Bankruptcy Code, 2016. As a result, the Financial Creditor has filed this Application for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. Since this is a Petition of “Financial Creditor”, therefore, the Insolvency Process shall commence as prescribed under Section 7 of I&BC, 2016 - the “Moratorium” as prescribed under Section 14 of the Code 2016 shall come into operation - Application admitted.
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