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2021 (3) TMI 62 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of loans - Financial Debt - scope of section 7 of the Insolvency and Bankruptcy Code, 2016 as compared to section 9 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Although, the corporate debtor claimed that the present application is not maintainable but in paragraph 7(c), he admits that he executed the loan agreement of ₹ 1 crore as sanctioned is received by the company and also issued the cheques. In paragraph 7(f) of reply, the corporate debtor admit that the financial creditor got transferred ₹ 20 lakhs on January 30, 2019 to the corporate debtor and thereafter ₹ 25 lakhs were also transferred on February 25, 2019. He further claimed in the same paragraph that total amount of ₹ 65 lakhs were transferred by the financial creditor to the account of corporate debtor. He further stated in the reply that the financial creditor has not released the entire loan amount. He further stated in paragraph 7(l) of the reply that in the sanction letter dated January 23, 2019 (in clause 15) it is mentioned that bullet payment of entire loan at the end of six (6) months from the debt of disbursement, hence the corporate debtor has not committed the default in repayment and so there is no default in repayment of loan. Mere plain reading of the provision show that under section 7 of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority to see whether there is a financial debt and default has occurred in repayment of that debt or not, the application is complete or whether any disciplinary proceedings is pending against the proposed RP or not. So far dispute is concerned like section 9 of the Insolvency and Bankruptcy Code, 2016, in section 7 of the Insolvency and Bankruptcy Code, 2016, proceedings, there is no scope to raise the disputes. Therefore, the averments made in the reply regarding the dispute raised by the corporate debtor is concerned, is not liable to accepted. Thus, the application is complete and the loan has been disbursed and the same has not been not paid by the corporate debtor, therefore there is default in payment of debt, there is no disciplinary proceedings pending against the RP. Therefore, there are no option but to admit the application under section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016. Petition admitted - moratorium declared.
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