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2020 (6) TMI 784 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - corporate term loans to the CD and CD has failed to pay instalments - Financial Creditors - existence of debt and dispute or not - HELD THAT:- The FC had extended corporate term loans to the CD and CD has failed to pay instalments, overdue amount and the principal amount as stated. FC also submitted Commercial Credit Information Report dated October 11, 2019 as record of default. Mere denial of the claim of the FC without any supporting evidence such as regular repayment of instalments, overdue amount, principal loan amount, etc., will not satisfy the submission of the managing director of the CD. Also, mere dialogues going on between the parties cannot amount to no default as claimed by the managing director in his reply - Petition filed under section 241 of the Companies Act will not have any bearing for the current proceedings initiated under the IBC. The application made by the financial creditor is complete in all respects as required by law. It clearly shows that the corporate debtor is in default of a debt due and payable, and the default is in excess of minimum amount of one lakh rupees stipulated under section 4(1) of the IBC at the relevant time. Therefore, the default stands established and there is no reason to deny the admission of the petition. Application admitted - moratorium declared.
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