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2021 (5) TMI 581 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - HELD THAT:- Petitioner has not provided any material to establish insolvency of the Respondent company. The master data details of the Respondent company available on the MCA website show that the company is active and compliant and has no pending charges on assets showing a good working condition of the company. In the absence of specific data regarding insolvency of Respondent, we are unable to determine that the company is insolvent, which is the main reason to push a company into the rigours of the CIRP. If the non-repayment of debt is not because of insolvency, but rather due non fulfilment of business commitment by the other side, then the Petition remains one only seeking recovery, treating this AA as a debt recovery forum, which is not permissible. Also, an undisputed debt is a sine qua non for initiating any process u/s. 9 of the Code. The impact of the present financial distress caused by the global novel corona virus pandemic necessitating a nationwide lockdown, cannot be ignored. Major decisions have been taken to protect Industry from its effects, to inject economic stimulus and to revive the economy. More specifically, on 24.03.2020 the Legislature increased the minimum threshold of default from ₹ 1 Lakh to ₹ 1 Crore so that the Code is not used merely for recovery of debt. Respondent has raised various reasons why the debt is not paid and at the same time admits liability and seeks more time to pay the same, and also that the Respondent is a going concern, thus in the totality of facts and circumstances including the bad economic scenario prevailing in the country, this is not a case fit for initiating CIRP and that it would be in the interest of justice to allow the Respondent some more time to negotiate with the Petitioner and settle the debt at the earliest. Application disposed of by directing the Respondent/Corporate Debtor to repay the debt or the amount as mutually settled with the Petitioner within a period of six months, failing which, the Petitioner would be at liberty to file a fresh petition for admission.
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