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2021 (5) TMI 178 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - HELD THAT:- On perusal of documents, it appears that 'debt' and 'default' are proved. In the counter filed by the Corporate Debtor on 05.03.2021, it was specifically admitted to sanction the credit facilities and also to the outstanding under the loan accounts in para 9 and 10 of their counter. Thereafter, the Corporate Debtor filed Additional Counter during February 2021 in which default in the loan account was categorically admitted. The grounds as raised by the Applicant in the present IA/167(CHE)/2021 and IA/168(CHE)/2021 do not hold much, since the affidavit not having been notarized is only a procedural irregularity and it is a curable defect. This irregularity can be rectified by the Applicant at any point of time. It is also pertinent to note here that the proviso to Section 7(5) of IBC, 2016 states that this Adjudicating Authority before rejecting the application under sub-clause (b) of sub-section (5) of Section 7 of IBC, 2016 shall give a notice to the Applicant to rectify the defect in the application - the Financial Creditor has proved existence of 'debt' and 'default', with respect to outstanding due against the Corporate Debtor. Therefore, this Insolvency and Bankruptcy Application stands admitted. Application admitted - moratorium declared.
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