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2019 (6) TMI 1588 - NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCHMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- The Corporate Debtor failed to create security within the stipulated period of 120 days, i.e., by 13.10.2018. The Petitioner Bank issued a letter dated 14.10.2018 demanding repayment of the credit facilities as the Corporate Debtor failed to create security in favour of the Petitioner within the stipulated period. The letter dated 14.10.2018 issued to the Corporate Debtor and the personal guarantors of the Agreement dated 11.06.2018 is annexed to the Petition. The Petitioner issued a letter dated 16.10.2018 to the Corporate Debtor and its guarantors seeking payment of the instalments of principal and interest amounts. The Corporate Debtor has not tendered any response and has taken least efforts to make the necessary payments to the Financial Creditor. The Petitioner on 29.10.2018 issued letter recalling the entire loan to the Corporate Debtor and subsequently on 01.11.2018 invoked guarantees to the Agreement dated 11.06.2018 to take action against the Guarantors. Copies of letter dated 29.10.2018 and 01.11.2018 are annexed to the Petition. The Sanction Letter dated 05.06.2018, the Master Facility Agreement dated 11.06.2018, and the CRILC Report establish that the Financial Creditor issued a loan to the Corporate Debtor and the same is in default. Moreover, the Corporate Debtor has admitted its liability in a letter dated 07.06.2018, issued by the Corporate Debtor to the State Bank of India. The Corporate Debtor has failed to maintain the financial discipline to repay the loan amounts and has not taken any efforts to make the necessary payments - Application under sub-section (2) of Section 7 of I&B Code, 2016 is complete - The existing financial debt of more than rupees one lakh against the corporate debtor and its default is also proved. Petition admitted - moratorium declared.
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