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2019 (12) TMI 285 - AT - Insolvency and BankruptcyAppeal against the initiation of CIRP - default committed by the ‘Corporate Debtor’ in repayment of its dues under the loan Agreement - The ‘Corporate Debtor’ contends that on the date of filing of the petition, there was no default as contemplated in Section 7 HELD THAT:- It is pertinent to mention that the ‘Corporate Debtor’ / Applicant has filed an Affidavit dated 28th March 2019 along with letter issued by YES Bank, dated 10th August 2018, to substantiate that the amount of ₹ 18.86 crores under the loan agreement dated 1st April, 2016 was credited in its account, and it immediately paid back the entire amount to the Applicant /Respondent in two tranches, firstly on 13th April, 2016 a sum of ₹ 17 Crores and secondly on 16th April, 2016 a sum of ₹ 1.86 crores. It is also asserted that the said amount has not been paid towards any previous outstanding. It appears that the ‘Corporate Debtor’ pleaded before the Adjudicating Authority that amount disbursed under the Loan Agreement dated 1st April, 2016, ₹ 18,86,00,000/- has been paid back on 13th April 2016 and 16th April 2016 itself, and as on date, no payment is due to the ‘Financial Creditor’ under the said Agreement - It appears that in compliance with the order of the Adjudicating Authority dated 29th November 2018 the ‘Corporate Debtor’ filed an Affidavit along with Bank certificate. But in reply no evidence was submitted to prove that the outstanding amount is due and payable. It is clear that document which was already rejected by the Adjudicating Authority, has been made the basis for passing the Order of Admission, which is not permissible under law - it is clear that finding of the Adjudicating Authority that a sum of ₹ 18,86,00,000/- was again disbursed to the ‘Corporate Debtor’ by the ‘Financial Creditor’ which is still due and payable is erroneous, without any basis and un-sustainable. In effect, order (s) passed by Ld. Adjudicating Authority appointing ‘Interim Resolution Professional’, declaring moratorium, freezing of account and all other order (s) passed by Adjudicating Authority pursuant to impugned order and action taken by the ‘resolution Professional’, including the advertisement published in the newspaper calling for applications all such orders and actions are declared illegal and are set aside. The application preferred by the 1st Respondent under Section 7 of the I&B Code is dismissed. The Adjudicating Authority will now close the proceeding.
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