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2020 (6) TMI 785 - NATIONAL COMPANY LAW TRIBUNAL — MUMBAI BENCH—COURT NO. 5Maintainability 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:- On perusing the documents produced on record, it is understood that the corporate debtor has defaulted in repayment of debt. The corporate debtor has acknowledged the disbursement of loan and its liability to repay on several occasions. However, the corporate debtor failed to pay. Hence, owing to the inability of the corporate debtor to pay its dues, this is a fit case to be moved under section 7 of the I and B Code. The nature of debt is a "financial debt" as defined under section 5(8) of the Code. It has also been established that there is a "default" as defined under section 3(12) of the Code on the part of the debtor. The two essential qualifications, i. e., existence of "debt" and "default", for admission of a petition under section 7 of the I and B Code, have been met in this case. It is found that the petitioner has not received the outstanding debt from the respondent and that the formalities as prescribed under the Code have been completed by the petitioner, this petition deserves "admission" - Application admitted - moratorium declared.
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