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2022 (1) TMI 62 - 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 the MCA master data updated by the respondent-company, it is seen that as on March 31, 2019 it is active compliant and is into manufacturing activity. It has a paid-up capital of ₹ 15 crores, though reduced to ₹ 5.39 crores due to negative reserves and surplus. It has tangibles assets of ₹ 4.46 crores and trade receivables of ₹ 7.59 crores. Its total current assets have increased in the last three years and stand at ₹ 19.46 crores. It had net revenue from operations of ₹ 19.31 crores which has increased over the last three years and shows a growth rate of 46 per cent. over last year. It has a net profit of ₹ 77 lakhs and an improving and positive return to equity ratio. Thus prima facie, it has sufficient income and assets to repay its debt and cannot be termed as insolvent. The respondent is not an insolvent company, the respondent should be given some more time to repay the debt. Considering the amount involved, its financial status and the present economic scenario, despite the argument of the petitioner that it is a fit case for admission, it would be fair to allow the respondent some more time. The Code cannot be used to jeopardise the financial health of an otherwise solvent company by pushing it into insolvency, which would be against the objects of the Code. Petition is disposed of by directing the respondent/corporate debtor to repay the balance debt or the amount as settled with the petitioner within a period of 6 months failing which the petitioner would be at liberty to file a fresh petition for admission.
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