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2022 (1) TMI 402 - 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 - Whether a Financial Creditor, despite being a Member of Consortium can individually maintain an application under section 7 of the I & B Code, 2016, seeking initiation of CIR Process against the corporate debtor? - HELD THAT:- A perusal of provisions of section 7(1) of the I & B Code, 2016, makes it amply clear that a Financial Creditor either by itself or jointly with other Financial Creditors or any other person on behalf of the Financial Creditor as may be notified by the Central Government may file an application for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor when a default has occurred - there is no bar for the Financial Creditor to initiate proceedings individually despite being a Member of Consortium of Lenders. Hence the contention of the learned counsel for the Corporate Debtor that the application filed by individual Financial Creditor is not maintainable is devoid of any force or substance. Hence the same is liable to be rejected and accordingly the same is hereby rejected. Whether the applicant herein has made out a case for initiation of Corporate Insolvency Resolution Process (CIRP) against the respondent/Corporate Debtor? - HELD THAT:- When admission of debt in this case being as clear as crystal and as the applicant by placing the undisputed demand notice dated 22.05.2018 issued under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), has also established default on the part of the Corporate Debtor this application of the financial creditor has fully satisfied the requirements viz, existence of "debt" and "default" in repayment of the said debt on the part of the respondent corporate debtor, as such this application is liable to be admitted and initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor is bound to be ordered. The respondent Corporate Debtor, M/s. Ind Barath Thermal Power Ltd, is admitted into Corporate Insolvency Resolution Process under section 7 of the Insolvency & Bankruptcy Code, 2016 - moratorium declared.
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