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2019 (10) TMI 1263 - NATIONAL COMPANY LAW TRIBUNAL, MUMBAIMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - HELD THAT:- It is noted that the reply of the Corporate Debtor that it is a going concern with over 100 employees, an asset value of more than ₹39 crore, and an inventory of finished and unfinished stock of more than ₹80 crore. However, under the IBC architecture, the shift is from “inability to pay” to “existence of default.” Hon’ble Supreme Court in Swiss Ribbons Pvt Ltd & another v Union of India & others [2019 (1) TMI 1508 - SUPREME COURT]. Therefore, the present petition cannot be decided on the basis of existence of employees, or asset value of the Corporate Debtor or the inventory of stock available. It will have to be decided on the basis of existence of default. The Corporate Debtor has admitted the liability by the letter dated 05.02.2019, at pp.122-123 of the Petition. The Corporate Debtor had sought time till 25.03.2019 to repay all the outstanding dues. However, until the hearing of the petition on 06.09.2019, the Corporate Debtor has not settled the outstanding dues. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of the minimum amount of one lakh rupees stipulated under section 4(1) of the IBC - the default stands established and there is no reason to deny the admission of the Petition. The application made by the Financial Creditor is complete in all respects as required by law - this Tribunal admits this Petition and orders initiation of CIRP against the Corporate Debtor. Petition admitted - moratorium declared.
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