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2020 (9) TMI 261 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - outstanding operational debt - default of debt or not - respondent/corporate debtor filed affidavit in reply inter alia stating that the petition is contrary to the object of the I & B Code, the corporate debtor is not an insolvent company and is merely facing a temporary financial crunch. HELD THAT:- The demand notice issued by the applicant on 14th December, 2019 has been replied by the corporate debtor vide letter dated 18th December, 2019 (page 39 of the application) wherein the corporate debtor has categorically admitted the operational debt and has requested the operational creditor to give more time to settle the outstanding amount. Moreover, the corporate debtor has also confirmed the dues payable to the applicant in "confirmation of accounts from 1st April 2019 to 30th September, 2019' annexed to the application (page 22) which bears the seal and signature of the respondent. Under such circumstances contentions raised by the respondent that there is nothing on record to show that the goods in respect of the invoices mentioned in the petition were actually delivered on the desired time and claiming that the goods were not delivered to the respondent etc. are illusory and far from truth. The instant petition filed by the applicant is well within limitation and there is no denial of the operational debt and/or any pre-existing dispute regarding the operational debt from the corporate debtor - 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 operational debt to the Applicant. On perusal of the records it is also found that the corporate debtor has never raised any dispute on issuance of notice u/s 8 of the I & B Code nor have ever raised any dispute prior to the issuance of notice - it is evident that the respondent has defaulted the debt and has admitted the operational debt. On the basis of material available on record it is evident that the corporate debtor has committed default in payment of operational debt and, therefore, it is a fit case to initiate Insolvency Resolution Process by admitting the Application under Section 9(5)(1) of the Code - Petition admitted - moratorium declared.
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