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2020 (7) TMI 744 - Tri - Companies LawMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Debt - existence of debt and dispute or not - HELD THAT:- This Bench has no doubt that the Corporate Debtor M/s. Katara Spinning Mills Limited had a total debt of ₹ 23.90 crores and also defaulted on OTS-2018 and OTS-2019 schemes - the Bench concludes that the nature of Debt is a “Financial Debt” as defined under section 5 (8) of the Code. It has also been established that there is a “Default” as defined under section 3 (12) of the Code on the part of the Debtor. The two essential requirements, i.e. existence of ‘debt’ and ‘default’, for admission of a petition under section 7 of the I&B Code, have been met in this case. Petition admitted - moratorium declared.
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