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2020 (2) TMI 1422 - 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 - it is claimed that since the alleged default in the instant case is not crystalized as on date and as such the instant petition is legally untenable HELD THAT:- On perusal of the records prima facie it appears that the objections/allegations raised by the respondent are illusory and not supported by any valid document, whereas, the applicant bank has filed volumes of papers documenting sanction, disbursement, working capital consortium agreement, joint and several deed of continuing guarantee filed by the applicant, CDR approval, master restructuring agreement, inter se agreement, recall/demand notice, reply of corporate debtor to the demand notice etc. to substantiate its claim - On perusal of the records it is found that the first and foremost objection raised by the respondent is that the application is barred by limitation. On perusal of the records it is found that the applicant bank has placed on record letter dated 28-2-2013 (page No. 446) addressed to the respondent company approving "sanction of bank's stand on final restructuring package under CDR mechanism". That, the said letter is stamped and signed by the respondent company as a token of acceptance of the terms and conditions laid down in the sanction letter/s. Further, the records reveal that from time to time the respondent has executed/entered into various documents acknowledging the debt. On perusal of the record it is also found that the respondent company has acknowledged the financial debt in the balance sheet as on 31-3-2017, statement of profit and loss for the year ended 31-3-2017, cash flow statement for the period ended 31-3-2017 and notes forming integral part of the balance sheet as on 31st March, 2017 (pages 733-738). This itself shows that the respondent company has acknowledged the debt in the year 2017. Since the application is filed on 21-8-2018, it is well within time. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the Corporate Debtor committed default in paying the financial debt to the Applicant. On perusal of record, it is held that there is existence of default and that the application under section 7(2) of the Code is also complete in all respect - In the instant case, the documents produced by the Financial Creditor clearly establish the 'debt'. Section 13(2) Notice issued by the Financial Creditor clearly indicates that entire debt was recalled. There is a default on the part of the Corporate Debtor in payment of the 'financial debt' There is no dispute in the case that the petitioner is the financial creditor. The application is also furnished in the prescribed form - 1 of the Rules and the prescribed fee has also been paid - the petitioner/financial creditor having fulfilled all the requirements of section 7 of the Code, the instant petition deserves to be admitted - Petition admitted - moratorium declared.
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