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2019 (11) TMI 963 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor defaulted in making repayment - existence of dispute or not - Section 7 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- In the present case applicant had sanctioned and disbursed the loan which are recoverable with applicable interest by entering in to loan cum Hypothecation Agreements with the respondent borrower. The corporate debtor had undertaken the liability to repay the loan along with the agreed interest. The loan/financial facility was clearly disbursed against the consideration for time value of money with a clear commercial effect of borrowing. Moreover, the debt claimed in the present application includes both the component of outstanding principal and interest. The matter not only the present claim comes within the purview of ‘Financial Debt but also the applicant can clearly be termed as ‘Financial Creditor’ of the respondent corporate debtor so as to prefer the present application under Section 7 of the Code. As per the provisions of Section 7 of the Code, no prior notice under Section 8 of the Code is required in respect of a financial debt. An application under Section 7 of the Code is acceptable so long as the debt is proved to be due and there has been occurrence of existence of default. What is material is that the default is at least 1 lakh. In view of Section 4 of the Code, the moment default is of Rupees one lakh or more, the application to trigger Corporate Insolvency Resolution Process under the Code is maintainable. In the present case the claimed financial debt in the light of the award exceeds ₹ 564 Lacs and the respondent has defaulted in making payment of the debt. The present application is complete in all respect and the applicant financial creditor is entitled to claim its outstanding financial debt from the corporate debtor and that there has been default in payment of the financial debt - in terms of Section 7(5)(a) of the Code, the present application is admitted.
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