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2019 (11) TMI 1597 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor has committed default in making the repayments of the term loan - existence of debt and default or not - Time Limitation - HELD THAT:- It has become very clear that there was loan agreement between both the parties which is not denied by both of them. A total amount in default is ₹ 80,73,76,364.84 including interest, penal interest and other expenses. Therefore, there is no doubt that both the parties shared a relationship of creditor and debtor. Time Limitation - HELD THAT:- A mere verbal acknowledgment without any evidentiary document does not extend the limitation period, but any payment made by the debtor or any acknowledgment of the debt by the debtor in his books of account is a sufficient cause to extend the limitation period as per section 18 of the Limitation Act - In the present case payments have been made regularly even after the first date of default up until April, 2016 and this petition has been filed in February, 2019 making this petition well within the limitation period. This Adjudicating Authority, on perusal of the documents filed by the creditor, is of the view that the corporate debtor defaulted in repaying the loan availed - the existence of debt and default is reasonably established by the financial creditor as a major constituent for admission of a petition under section 7 of the I and B Code. Therefore, the application under sub-section (2) of section 7 is taken as complete, accordingly this Bench hereby admits this petition. Petition admitted - moratorium declared.
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