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2018 (11) TMI 1781 - Tri - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - the Adjudicating Authority is only to be satisfied that the default has occurred and that the ‘Corporate Debtor’ is entitled to point out that the default has not occurred in the sense that the debt is not due - HELD THAT:- This Bench is of the view that promoters cannot stall the initiation of CIRP against the Corporate Debtor, if the debt and default are proved. Hence both the applications are dismissed. The new addition is that the Corporate Debtor is ready to settle this matter for a sum of ₹ 31 crores on the basis of the value of the security available with the Petitioner. Since the previous OTS proposal (₹ 51 crores approx) which was much more than the present offering of ₹ 31 crores was already rejected by the Petitioner, there is no point in giving any credence to this proposal - The existence of debt and default is the sole criteria for admission of petition under Section 7 as discussed supra. The existence of debt and default is proved beyond any doubt in this case. Petition admitted - moratorium declared.
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