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2020 (2) TMI 1588 - Tri - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - Legality of deed of assignment of debt - time limitation - HELD THAT:- It is not in dispute that the original creditor of the Corporate Debtor i.e. The South Indian Bank Limited granted and disbursed loan amount of ₹ 25 Crore in favour of the Corporate Debtor. It is also not in dispute that the Corporate Debtor did not clear the outstanding debt and thereby committed default in paying the financial debt. Hence, on the basis of above admitted facts, the Corporate Debtor has to be admitted in CIRP. However, the Corporate Debtor took defence that debt has been illegally assigned in favour of the Financial Creditor. The Hon'ble NCLAT in case of Lalan Kumar Singh, Executive Director & shareholder of GPI Textile Ltd. Vs. Phoenix ARC Pvt. Ltd. & Anr. [2018 (12) TMI 1648 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL] clearly held on similar set of facts that, In present case we find that the appellant has sought declaration that the assignment made by HSBC to 'Phoenix' as illegal, which can be raised only in a civil suit. The appellant is trying to convert the proceedings under the 'I & B Code' as civil proceedings akin to a trial which is not the legislative intent. The pronouncement explains in clear terms the law set out under Section 7 of I & B Code. This Authority has only to see whether the financial debt more than ₹ 1 Lakh is due and payable by the Corporate Debtor to the Financial Creditor and the Corporate Debtor committed default in paying the debt. So also, the proceeding is filed within period of limitation. Both facts are proved from the evidence on record. The application is filed within period of limitation. Application admitted - moratorium declared.
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