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2021 (1) TMI 1125 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - HELD THAT:- There is no dispute that the Corporate Debtor has availed various financial facilities from the Financial Creditor and its former associate Banks, now merged into the SBI. Having availed such financial facilities from public sector banks, the Corporate Debtor cannot avoid repayment merely relying on technicalities. While harping on the provisions of Limitation Act, the Corporate Debtor itself has filed Counter only on 27.02.2020, in a petition filed on 06.09.2019. Time for filing Counter was sought on different occasions, viz. 05.12.2019, 23.01.2020 and 07.02.2020. Apart from the technical issues raised, the Corporate Debtor did not dispute existence of debt and default, albeit it may differ dates of default and so on. Public money cannot be squandered away by the Corporate Debtor by finding loopholes. Time Limitation - HELD THAT:- It is observed that the OTS proposal was also submitted by the Corporate Debtor and the Financial Creditors have met on 07.02.2020 to discuss about such OTS proposal. The above correspondence and the decrees passed by the DRT in the instant case amply prove that there is financial debt which was due. Thus, by accepting liability vide their letter dated 29.01.2020, agreeing to repay the debt, the Corporate Debtor now cannot take a stand that the debt is barred by limitation. Acknowledgement of debt and agreeing to repay the same amounts to liability and it automatically extends the limitation period. It is not in dispute that the Financial Creditor disbursed various types of loans from time to time and there is default. Other contentions raised by the learned counsel for the Corporate Debtor cannot be entertained since the Financial Creditor is able to establish the debt and default. Therefore, the petition is to be admitted against the Corporate Debtor. After going through the documents filed by the petitioner we are of the view that the petition is liable to be admitted against the Corporate Debtor. The petition is accordingly admitted. Petition admitted - moratorium declared.
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