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2020 (10) TMI 824 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor had committed default in repayment and thereby the loan was recalled by issuing of Section 13(2) notice under the SARFAESI Act 2002 on 20th November 2017 by classifying the account of the Corporate Debtor as NPA - existence of debt and dispute or not - time limitation - HELD THAT:- Admittedly, the Corporate Debtor has issued the letter dated 11.11.2016. It is a letter addressed to the CEO and Managing Director of ARCIL, in reply to the letter dated 19.9.2016 issued by the ARCIL to the Corporate Debtor. A reading of the letter reveals that it was issued by the Corporate Debtor without any prejudice. The subject matter of this letter is related to a proposal for settlement and acceptance of the proposal for the settlement. As per the letter, the Corporate Debtor along with the Group Companies proposed terms of settlement for the acceptance of the Financial Creditor. The Uniworth Group agreed to settle the entire debt amount for an amount of ₹ 75,00,00,000/- and tendered an amount of ₹ 11,25,00,000/-. The Ld. Sr. Counsel for the Corporate Debtor further would submit that ₹ 38,85,00,000/-also paid thereafter and balance payable is ₹ 23, 90, 00,000/- and showed its readiness to pay the balance in compliance of the part of the obligation on the side of the Financial Creditor 50% of the agreed amount the Financial Creditor shall release the charge of assets of the Corporate Debtor acquired by the Financial Creditor and since the charge was not released as per the understanding the balance payable as per the settlement has not been paid. According to him, suppressing the said payment towards the debt payable as agreed the Financial Creditor filed this application and, therefore, this application is liable to be dismissed. One another objection raised on the side of the Corporate Debtor is that O.A. No. 162/2014 filed by the ARCIL has been decreed on 06.02.2019 during the pendency of the present proceedings and Review Petition challenging the said decree has been filed before the DRT, Nagpur and it is pending for consideration. Therefore, recourse to be taken by the Financial Creditor would be to execute the decree got in favour of the Financial Creditor and without having such recourse, filing this application amounts to recovery of the decreed amount which does not come within the objectives of the Code and thus liable to be dismissed. Thus, the claim of the Financial Creditor being found time barred, it can be held that the debt even if it is due, is not payable in law. Accordingly this application is liable to be dismissed - application dismissed.
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