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2021 (6) TMI 528 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - real estate project - existence of debt and dispute or not - HELD THAT:- It is undisputed fact that the Petitioner had granted a short term loan to the Corporate Debtor for general corporate purposes for real estate projects by way of a Sanction Letter dated 15.04.2019 and thereafter, executed a facility agreement dated 16.04.2019 wherein the total amount of ₹ 15 crores were lent by the Petitioner to the Corporate Debtor. In terms of the facility agreement, the Petitioner paid the amounts as per the drawdown at clause 2.3 of facility agreement - The Facility Agreement was executed for a fixed term of 6 months and therefore, it can be construed that upon maturity, the money would be repaid by the Corporate Debtor to the Petitioner. The Facility Agreement also provides for events of default wherein the Petitioner could seek the payment of entire amounts on account of breaches of performance of obligations by the Corporate Debtor. Upon perusal of Facility Agreement and security created in pursuance of monies lent to the Corporate Debtor, it is established beyond doubt that the Facility Agreement executed between the parties entails the details of debt of ₹ 15 Crores, as was sanctioned and disbursed to the Corporate Debtor. The events of default expressly define the rights accrued to the Financial Creditor to recall the entire loan on non-payment of dues by the Corporate Debtor. The Corporate Debtor has also not disputed that he had availed the said monies and hence, has offered to settle the said outstanding amount by way of proposal on 24.02.2021. Hence, all the ingredient of Section 7 are satisfied and Petition is admitted. The nature of Debt is a "Financial Debt" as defined under section 5(8) of the Code. It has also been established that there is a "Default" as defined under section 3(12) of the Code on the part of the Debtor. The two essential qualifications, i.e., existence of 'debt' and 'default', for admission of a Petition under section 7 of the I & B Code, have been met in this case - Petition admitted - moratorium declared.
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