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2021 (4) TMI 58 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor sought time to make payment for several times. But without making payments they proceeded to sell the assets of the Corporate Debtor, which is a clear case of fraud and cheating - present Application has been settled after admission before making the Public Announcement - existence of debt and dispute or not - HELD THAT:- In this case the existence of debt is reasonably evidenced in the consent terms that were also made part of the order of this Tribunal dated 24.09.2020 as well as the averments made by the Corporate Debtor themselves regarding the amount of debt outstanding to the Financial Creditor, admitting the existence of a debt. The Applicant having proved the existence of a debt as well as existence of default, as elaborately discussed in the order dated 25.08.2020 admitting the Application, the only course to be adopted here is to admit this application and order Corporate Insolvency Resolution Process against the Corporate Debtor. The I&B Code allows the Applicants to withdraw their Application under Sections 7, 9 and 10 of the Code at any time; a) one before the constitution of the CoC b) after constitution of the CoC but before the invitation of the EoI or c) after the invitation of the EoI in exceptional cases, on application made by the applicant. The present Application has been settled after admission before making the Public Announcement as per Regulation 6 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The I&B Code does not bar the Tribunal to Admit a matter which was settled after Admission. Application filed on behalf of Financial Creditor/ Applicant under Section 7 of the I& B Code, 2016 for initiation of Corporate Insolvency Resolution Process is admitted - Application admitted - moratorium declared.
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