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2020 (5) TMI 421 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of default or not - time limitation - only defence taken by the respondent is that the debt being barred by limitation an application under section 7 of the Code could not be maintained - HELD THAT:- In view of the order of the DRT-I the debt became due and payable with effect from August 17, 2018. The present petition was filed on March 25, 2019 within three years of the date of the order. An application under section 7 can be filed within 3 years as provided under article 137 of the Limitation Act - Admittedly the respondent had committed default in payment of the debt. In view of the orders of the DRT-I, Hyderabad the debt became "due and payable" subsequent to August 17, 2018. Therefore, the defence contention that the debt was time barred cannot be accepted. The issue is answered in the negative. Existence of default or not - HELD THAT:- In an application under section 7 of the Code the reason for the inability of the respondent in paying off the debt is not required to be looked into by the Adjudicating Authority. What is required to be seen is the default - In this case the default has been satisfactorily proved. Thus the petition needs to be admitted. Petition admitted - moratorium declared.
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