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2019 (3) TMI 1234 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - procedure in relation to the Initiation of Corporate Insolvency Resolution Process by the “Financial Creditor” - applicants had booked a office unit and advanced to the respondent corporate debtor - amount of default as exceeding ₹ 1 lakh - complete application under Section 7 of the Code for initiative - whether respondent corporate debtor has committed default in payment of the financial debt? - HELD THAT:- The present application under Section 7 of the Code for initiative Corporate Resolution Insolvency Process has been filed by petitioner financial creditor in Form-1 in terms of Rule 4 of Insolvency and Bankruptcy (application to Adjudicating Authority) Rules, 2016 accompanied with required information, documents and records as prescribed under the Rules. It is reiterated that the Form-1 filed in the present case under Section 7 of the Code read with Rule 4 of the Rules, shows that the Form is complete in all respect and there is no infirmity in the same. In the present case the amount of default exceeds much more than 1 lakh. In view of Section 4 of the Code, the moment default is Rupees one lakh or more, the application to trigger Corporate Insolvency Resolution Process under the Code is maintainable. There is sufficient material on record to conclude that respondent corporate debtor has committed default in repayment of the financial debt. The applicant clearly comes within the definition of Financial Creditor. The material placed on record further confirms that applicant financial creditor had disbursed the money to the respondent corporate debtor as consideration for purchase of office unit. Though considerable long period has since lapsed even the principal amount disbursed has not been repaid by the respondent corporate debtor. The material on record reveals that there is no disciplinary proceeding pending against the proposed IRP. In the facts we are satisfied that the present application is complete and there has been a default in payment of the financial debt - Accordingly, in terms of Section 7 (5) (a) of the Code, the present application is admitted.
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