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2017 (11) TMI 225 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - existence of default in payment of debt - Held that:- The material on record clearly go to show that in order to finance the project of ‘Aura Mall’, Respondent- Corporate Debtor borrowed monies from HUDCO and Dena Bank and furnished Securities, Guarantee Agreements and Corporate Guarantee, as well as Pledge of Shares. The Registered Assignment Agreements executed by HUDCO and Dena Bank in favour of the Applicant clearly show that the monies borrowed from them along with the Securities were assigned to the Applicant. Since the monies were borrowed by the Corporate Debtor from the HUDCO and Dena Bank on interest basis, it is a ‘financial debt’. Such ‘financial debt’ has been assigned to the Applicant. Moreover, the Applicant has also granted Additional Financial Assistance of ₹ 12 Crores and ₹ 5 Crores to the Respondent on interest basis. Therefore, it is also a ‘financial debt’. The documents on record, including the Notice under SARFAESI Act, clearly show that a default has been committed by the Respondent in repayment of the financial debt. Therefore, Applicant is a ‘Financial Creditor’ and Respondent is a ‘Corporate Debtor’. A default has been committed by the Corporate Debtor in repayment of the financial debt. The Applicant proposed the name of Mr. Devendra Padamchand Jain as ‘Interim Insolvency Resolution Professional’ and also filed his Written Communication. In view of the above discussion, this Application deserves to be admitted and it is accordingly admitted under Section 7(5) of the Code. The Interim Insolvency Resolution Professional is hereby directed to cause public announcement of the initiation of ‘Corporate Insolvency Resolution Process’ and call for submission of claims under Section 13(l)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The other Secured and Unsecured Creditors and Operational Creditors are also entitled to file their claims before the Interim Insolvency Resolution Professional. Also order moratorium under Section 13(1)(a) of the IB Code accordingly.
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