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2020 (10) TMI 494 - 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 - time limitation - HELD THAT:- There is acknowledgment of debt in the balance sheet of the corporate debtor all along. It is well-settled through various judgments of the Hon'ble Supreme Court now that an acknowledgement in the balance sheet of the company satisfies the requirements of section 18 of the Limitation Act, 1963, leading to a fresh period of limitation commencing from each such acknowledgement. Further, the reply also makes it clear that there is a debt due and payable to the Financial Creditor, which remains unsatisfied. Therefore, the aspect of limitation raised as one of the defences by the Corporate Debtor does not hold water. As far as the other contentions are concerned, such as not being given Buyers Credit Facility on time, the fact that there was fluctuation in the exchange rate, the availability of raw materials, and initiation of proceedings in various other courts under other laws, outstanding amounts payable by the customers, security deposit realisable from various authorities, parties etc cannot be considered to be defences in a petition filed under section 7 of the IBC. Further, the fact that the Corporate Debtor has itself submitted various OTS proposals to the Bank, is ipso facto an admission of the fact that there is a debt due and payable to the Financial Creditor. The application made by the Financial Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount of one lakh rupees stipulated under section 4(1) of the IBC at the relevant time. Therefore, the default stands established and there is no reason to deny the admission of the Petition. Petition admitted - moratorium declared.
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