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2019 (4) TMI 1745 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of Corporate Insolvency Resolution Process - Corporate Debtor committed default in paying the loan - default of debt - section 7 of the Insolvency & Bankruptcy Code, 2016 - HELD THAT:- It is not in dispute that the financial creditor gave corporate advance of ₹ 15 lakhs to the corporate debtor. There appears to be dispute of the rate of interest. In my considered opinion, if the amount payable towards interest is kept aside and not considered as the rate may be exhorbitant, still it is seen from evidence on record that the corporate debtor is liable to pay to the financial creditor the financial debt of more than ₹ 1 lakh - Since there is a default of debt of a sum more than ₹ 1 lakh committed by the corporate debtor, then corporate debtor has to be admitted in CIRP. It is not in dispute that the financial debt as claimed by the Financial Creditor is due and payable by the corporate debtor. The corporate debtor did not raise defence that corporate advance given to them is in contravention of provisions of sections 185 and 186 of the Companies Act, 2013 - the financial creditor proved both crucial facts that there is a debt of more than ₹ 1 lakh due and payable by the corporate debtor and the corporate debtor committed default in paying the debt. The application has to be admitted. Application admitted.
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