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2020 (1) TMI 1327 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- On a perusal of CRILCFGMO which is a Return of defaulted borrowers placed as Annexure 1 in page No. 146 and 147 this Authority is satisfied that on 20.07.2018 Syndicate Bank, the Financial Creditor has reported to have moved the borrower into the "Moved to Default Status' on 16.07.2018 along with 10 various other lending Banks. Also, the Financial Creditor has issued a recall notice on 05.12.2018 to the Corporate Debtor instructing them to clear the dues, failing which recovery action will be initiated including filing before NCLT. A contention is seen to have been made by the Authorized Representative who appeared on behalf of the Corporate Debtor that a Resolution Plan is already under consideration by all other Financial Creditors and only the Applicant/Financial Creditor who is having a negligible 1.64% voting power in the total claim has come forward for the CIRP process. In the instant case, the Financial Creditor has complied with all the requirements with respect to initiating the CIRP process against the Corporate Debtor Company and produced all the applicable documents in support of initiating the CIRP process in the prescribed manner. Accordingly, this Adjudicating Authority is satisfied that default has occurred and the application under sub-section 2 of Section 7 of I&B Code, 2016 is complete in all respects notwithstanding the fact that the Financial Creditor has acted against the interest of other lending institutions in violation of the Joint Lending Arrangements and stipulations contained in various agreement such as Joint Deed of Hypothecation, Master Inter Credit Agreement [MICA], necessary inter se agreements, Trust and Retention Agreement, etc. This Tribunal is required to adjudicate the matter within contours prescribed under Section 7 of the Insolvency and Bankruptcy Code without having regard to any other policy matter or guideline issued by the competent authority with respect to the Joint Lending Arrangement amongst the Bank or similar other documents. This Authority is duty bound to admit this application initiated under Section 7 by a Financial Creditor if a default has occurred and the application is complete in all respect and there is no disciplinary proceeding is pending against the proposed Resolution Professional - taking into consideration the facts and circumstances of the case as well as the position of Law, we are of the view that this Application as filed by the Applicant -Financial Creditor is required to be admitted under Section 7(5) of the I&B Code, 2016. The Petition stands admitted in terms of Section 7 of the Code and the Moratorium shall come into effect as of this date.
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