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2019 (2) TMI 1662 - Tri - Insolvency and BankruptcyAdmissibility of petition - Initiation of Corporate Insolvency Resolution Process - time limitation - Section 7 of the Insolvency and Bankruptcy Code, 2016 read with, rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - Corporate Debtor - main objection raised by respondent company is that the claim of the applicant is barred by the limitation - HELD THAT:- It is true that Limitation Act, 1963 has been made applicable and the provisions of Article 136 provide for 12 years period to execution of decree or order of a Civil Court. The argument received by the counsel, for Respondent is wholly without substance. Moreover the decree was modified on 04.04.2016. We do not find any substance in the raised by the Respondent and reject the same. Admittedly, the present petition was filed on 12.08.2018 and is within the period of limitation - Admittedly, the claim of the applicant was become due in the year 2010 and the decree in favour of the applicant was passed in the year 2013 as modified on 04.02.2016. The applicant in its application itself has submitted that more than five years have already lapsed and the respondent has not paid the decreed amount to the applicant. In the present case the applicant had given the loan amount which is recoverable with applicable interest by entering into loan agreements with the corporate debtor. The corporate debtor had borrowed the loan against payment of interest as agreed between the parties. The loan was disbursed against the consideration for time value of money with a clear commercial effect of borrowing. Moreover the debt claimed in the present application includes both the component of outstanding principal and interest - In that view of the matter not only the present claim comes within the purview of 'Financial Debt' but also the applicant can clearly be termed as 'Financial Creditor' so as to prefer the present application under Section 7 of the Code. In terms of Section 7(5)(a) of the Code, the present application is admitted - Moratorium declared.
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