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2017 (9) TMI 535 - Tri - Insolvency and BankruptcyProceedings under Insolvency and Bankruptcy Code, 2016 - default of operational debtor - Held that:- We find it safe to conclude that there has been default within the meaning of Section 3(12) read with Sections 4 and 6 of the Code. The judgment and decree of the Civil Court in a suit filed under Order XXXVII CPC clearly shows that the operational debtor is in default when the amount has not been paid on the demand raised by issuing a demand notice under Section 8 of the Code. The provisions of Section 123(1)(2) of the Insolvency Act, 1986 of England is relevant in this regard. Section 123(1) of the English Act talks of inability to pay debts if in execution or other process issued on a judgment, decree or order of any Court in favour of a Creditor of the Company is retuned unsatisfied in whole or part then a Company is deemed unable to pay its debts. A seemingly similar expression has been used in Section 3(12) of the Code describing it as default which can be read with Section 6 of the Code. Once there is a default then according to Section 123(1) of the English Act in cases of such like default a Company is deemed unable to pay its debts. The expression default is wider than inability to pay. Therefore, it takes into its sweep the cases where default has occurred irrespective of anything else. Therefore, we find that it is a fit case for triggering the Insolvency Resolution Process. As a sequel to the above discussion, this petition is admitted. We direct that Interim Insolvency Resolution Professional shall immediately make public announcement with regard to admission of this application under Section 7 of the Code
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