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2023 (8) TMI 1376 - AT - Insolvency and BankruptcyRejection of Section 7 application - NPA was declared on 19th July, 2016 but the Corporate Debtor’s OTS was sanctioned on 14.02.2020 under which OTS, default was committed during Section 10A of IBC Period - applicability of section 10A on default under the OTS - HELD THAT:- The focus of the law which was brought by Section 10A was that when the Corporate Debtor suffers default on account of Covid-19, they should be protected from the filing of any Insolvency Application in the default committed during the said period - Section 10A never intended to cover the default which is continuing before Section 10A period. The present is a case where admittedly default has been committed by the Corporate Debtor since 2016. Admittedly NPA was declared on 19th July, 2016. Learned Counsel for the Respondent has rightly referred to acknowledgement made by the Corporate Debtor in its balance sheets for the financial year 2018-19, 2019-20 and 2020-21 where the dues were clearly acknowledged. Thus, the present is the case where default was committed prior to commencement of Section 10A period. The submission that since default was also committed by the Corporate Debtor during the Section 10A period of the OTS amount which ultimately withdrawn on 25th January, 2021, the Application should be barred by Section 10A does not commend here. There being categorical default by the Corporate Debtor prior to Section 10A period, the Appellant was not clearly entitled for the benefit of Section 10A Period. There are no merit in the contention of Learned Sr. Counsel for the Appellant that Application under Section 7 of I&B Code, 2016 was barred by Section 10A. The Adjudicating Authority did not commit any error in admitting Section 7 Application - appeal dismissed.
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