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2021 (11) TMI 471 - NATIONAL COMPANY LAW TRIBUNAL , MUMBAI BENCHMaintainability 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:- The Corporate Debtor has accepted its liability to pay to the Financial Creditor in its reply dated 07.11.2020. The Corporate Debtor has not disputed the loan disbursed and has expressed its inability to pay to the Financial Creditor due to insufficiency of funds. There is no dispute as to loan amount disbursed by the Financial Creditor to the Corporate Debtor. Due to persistent failure on the part of the Corporate Debtor to repay the loan, the Financial Creditor vide letters dated 15.11.2017, 01.12.2017 and 20.12.2017 requested the Corporate Debtor to refund the interest amount - The Financial Creditor has attached copy of Balance sheet of the Corporate Debtor for the Financial Year 2014-2015 which reflects the debt payable to the Financial Creditor. The Financial Creditor has also attached the MOU dated 24.02.2014 and the 2nd MOU dated 19.02.2016 executed between the Financial Creditor and the Corporate Debtor which shows that the amount of loan was disbursed and the Corporate Debtor was also liable to pay an interest on the said loan @ 18% p.a. 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 ingredients, 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 - it is found that the Financial Creditor has not received the outstanding Debt from the Corporate Debtor and that the formalities as prescribed under the Code have been completed by the Petitioner. This Petition deserves 'Admission'. Petition admitted - moratorium declared.
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