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2019 (9) TMI 1388 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Loan declared as NPA - financial creditor or not - applicability of time limitation. Whether the applicant can be said to be financial creditor on the basis of the deed of assignment dated March 19, 2017? - HELD THAT:- The law requires that there must be legally assignment of debt. The deed of assignment is produced as annexure P3. It is prepared on stamp paper of ₹ 100. It has been registered duly before the Registrar of Assurance, Kolkata. Prima facie, we hold that it is legal and valid deed of assignment of debt. If, at all, it is on insufficient stamp paper, then law requires that the deficiency of paying stamp can be recovered with penalty. The deed cannot be said to be illegal thereby - the applicant herein is the financial creditor within the meaning of section 5(7) of the IBC - answered in affirmative. Whether the debt is time-barred? - HELD THAT:- It was expected from the financial creditor and earlier to that by the bank to file proceeding against the corporate debtor within three years from the date on which the account of the corporate debtor became a NPA. In this case the account declared to be a NPA on March 31, 2014 proceeding is filed on October 31, 2018 - From the perusal of those financial papers of the corporate debtor, it is seen that corporate debtor noted that they have to pay the debt of United Bank of India. Their account is declared as a NPA. In short, in the year 2016, the corporate debtor in its balance-sheet acknowledged the debt to be payable by them which is claimed herein by the financial creditor. This acknowledgment of debt in its balance-sheet by the corporate debtor in the year 2016 has brought the claim of financial creditor within period of limitation. It is filed well within period of limitation. The debt is not time-barred - Answered in negative. There is no dispute that the corporate debtor is liable to pay debt more than ₹ 21 crores. It is also not in dispute that the corporate debtor has committed default in paying the debt. By virtue of corporate debtor's admission about the debt in its balance-sheet for the year 2016, this proceeding appears to have been filed within period of limitation - the application is defect-free - application admitted - moratorium declared.
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