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2020 (2) TMI 1331 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor committed default in paying Financial debt - existence of debt and dispute or not - HELD THAT:- Hon'ble Appellate Tribunal directed this Adjudicating Authority to admit the Corporate Debtor in CIRP under Section 7 IBC, 2016 after giving opportunity to settle the dispute. Accordingly, this Authority vide order dated 18.12.2019 directed both State Bank of India and the Corporate Debtor to produce on record as to whether any steps are taken for settlement but no documents are produced. Meantime, some of the shareholders of the Corporate Debtor filed application under Section 230-232 of the Companies Act, 2013 (CA(CAA)1683/KB/2019) proposing Scheme of Arrangement. In that application, we appointed Chairperson directing him to hold the meeting of the creditors and shareholders of the Corporate Debtor and file report. Chairperson filed report stating that for want of time, meeting could not be held. It is also seen from the record that one of the creditors filed appeal bearing no. Company Appeal (AT) (Insolvency) No. 65 of 2020 against our order of rejection of its prayer for postponement of the date of the meeting. That appeal is still pending. Such meeting can be held and Scheme of Arrangement can be considered even after admission of the Corporate Debtor in CIRP and pending the CIRP process, we have already noted that Corporate Debtor did not dispute that it has committed default in paying the financial debt of more than ₹ 1 Lakh and hence, this application has to be admitted. In fact, this Authority and even the Hon'ble Appellate Tribunal has conclusively held that the Corporate Debtor has to be admitted in CIRP under Section 7 of IBC, 2016, hence, the Corporate Debtor in CIRP is admitted. Application admitted - moratorium declared.
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