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2020 (10) TMI 444 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- On careful examination of the Board Resolution, it is clear that the Board of the Financial Creditor never authorised the Director to initiate CIRP against the Corporate Debtor but to represent the company, concerning the business affairs relating to property of the company. The Corporate Debtor has rightly argued that the present petition is filed without any authority - This Bench has consistently taken the stand that for initiating CIRP against a corporate debtor, specific board resolution is required rather than a general one. It is in the interest of justice that consistency in approach is maintained. Therefore, without proper authorisation CIRP cannot be initiated against the Corporate Debtor. As per petition, date of default is 15.05.2019. However, the first Demand Notice was issued on 06.05.2019 and the second Demand Notice was issued on 13.05.2019. Both of these dates are before the actual date of default - As per Demand Notices dated 06.05.2019 and 13.05.2019, the balance amount of ₹ 12.39 crore is to be repayable within 24 hours of receipt of the notice. We are of the view that recalling such a huge amount within 24 hours is not a normal business practice. The Financial Creditor has failed to establish that there was a debt due and payable and that a default has occurred. Further, the Financial Creditor has failed to produce proper authorisation to initiate CIRP against the Corporate Debtor. The petition also has inconsistencies and inaccurate information and documents such as the Demand Notices being issued before the date of default, the disbursement details include payment made to other companies whose relationship with the Corporate Debtor has not been established, no corresponding Bank Entry or evidence of making payment to Corporate Debtor etc. The petition fails and CIRP cannot initiated against the Corporate Debtor as prayed for.
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