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2018 (7) TMI 2140 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - Whether as per Circular of RBI dated 12.2.2018 read with newly inserted sections 35AA and 35AB of Banking Regulation Act, 1949, the Applicant Bank before initiating insolvency proceedings, has to first finalise and implement a resolution plan within the specified timelines to be counted from the reference date to be notified by RBI? - HELD THAT:- Present proceedings are instituted under the Insolvency and Bankruptcy Code, 2016 and time is the essence of the Code, timelines are provided under the code for various actions in terms of days and same was held by Hon’ble Apex Court in its Judgment Mobilox Innovations Private Limited vs Kirusa Software Private Limited [2017 (9) TMI 1270 - SUPREME COURT]. Impugned Circular is addressed to banks, it is in the nature of “Guidelines” and does not in any manner restrict any proceeding being filed by any financial creditor under the IB Code. Further section 238 of the IB Code provides for overriding effect of the IB Code over all other laws (including the RBI circulars) - As per IBC, before admission, we are required to look into completeness of the application in terms of Section 7 and rules made thereunder and minimum default of one lakh rupees has occurred. A perusal of the application filed by Financial creditor is in conformity with the provision of Section 7 of the Code and Rules applicable. Record of default for the Corporate Debtor, as on 11th July 2018, as available on the Credit Repository of Information on Large Credits (CRILC) (as set up by the Reserve Bank of India) has been filed.; the letters and e-mail from the Corporate Debtor to the Financial Creditor admitting their debt and default constitute the other evidences of debt and default filed along with the Section 7 Application - Hence, default has occurred, which meets the requirement of Section 3(11) & (12) of I & B Code. The present application filed by the Financial Creditor for initiation of Corporate Insolvency Resolution Process as per the I & B Code, 2016 which is found complete therefore deserves admission - application admitted - moratorium declared.
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