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2018 (12) TMI 1669 - Tri - Insolvency and BankruptcyMaintainability of application - Initiation of Corporate Insolvency Resolution Process (CIRP) - Corporate Debtor - conversion of petition u/s 7 of the l&B Code - whether the loan advanced by the Financial Creditor to the Corporate Debtor is the financial debt? - whether for non-suggesting the name of I.R.P. in the application, the application is required to be rejected? HELD THAT:- Section 7(3) of I&B code states that, “the Financial Creditor shall along with the application furnish -(a) record of the default recorded with information utility or such other record or evidence of default as may be satisfied; (b) the name of the resolution professional proposed to act as an interim resolution professional; and (c) any other information as may be specified by the Board.” - Section 7(5) of l&B Code further states that /’where the Adjudicating Authority is satisfied that- “(a) a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, if may, by order, admit such application; or (b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application.” In this case, the Financial Creditor produced on record the statement of loan account of the Corporate Debtor maintained by them. A perusal of them proves that the loan was given to the Corporate Debtor and it has not been repaid. In fact, there is no dispute about this fact. It is the only say of the Corporate Debtor that since no interest is liable to be paid on the amount, it cannot be termed as the financial debt. It is now settled law that while considering application under section 7 of l&B Code, the authority has to record finding only on two aspects - (i) whether there is a debt and (ii) whether there is a default of the debt. In this case, the Financial Creditor has proved both the facts. Application admitted.
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