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2020 (3) TMI 22 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - time limitation - existence of debt and dispute or not - HELD THAT:- On perusal of the records it is found that Page Nos. 160 to 165 are balance confirmation letters issued by corporate debtor on different dates from 02.04.2013 to 31.03.2017 acknowledging the debt. That the said letters are duly stamped and signed by the corporate debtor confirming the outstanding debt in their loan account. That, this document itself is sufficient to prove that there exists financial debt - On perusal of the records it is found that the letter of authority dated 04.08.2018 issued by General Manager of the applicant bank authorising Mr. D Koteshwara Rao is proper and valid. As regards the other objections like denial of having taken any loan from the applicant bank appears to be illusory, imaginary and not sustainable in the eyes of law when volumes of documents produced by the bank evidencing execution of documents like term loan agreement, demand promissory note, undertaking to pay instalments, letter of hypothecation etc. are placed on record by the applicant bank. It is needless to add that all the above referred documents bear the stamp and signature of the corporate debtor. The Adjudicating Authority is of the considered view that there is a debt due to "financial creditor" and there is default on the part of the corporate debtor. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the application is complete in all respect and the Corporate Debtor committed default in paying the financial debt to the Applicant and the respondent company has acknowledged the debt - In the instant case, the documents produced by the Financial Creditor clearly establish the 'debt' and there is default on the part of the Corporate Debtor in payment of the 'financial debt'. The application under Section 7 (2) of the IB Code is complete in all respects and there is debt due to the "financial Creditor" and there is default on the part of the "corporate debtor". Hence, there is no alternative but to admit the application in absence of any infirmity - the petitioner/financial creditor having fulfilled all the requirements of Section 7 of the Code, the instant petition deserves to be admitted. Petition admitted - moratorium declared.
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