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2022 (1) TMI 1017 - AT - Insolvency and BankruptcyCorrectness of admitting of the application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - validity of assignment agreement - it is alleged that Adjudicating Authority failed to consider the fact that Assignment Agreement does not permit severance/ bifurcation of the Facility - HELD THAT:- In the present case, it is noticed that there were three financial transactions, which were assigned by Agreement dated 23.03.2019. Even if, one transaction that is Facility Agreement dated 14.05.2018 was under cloud due to interim order passed by the Delhi High Court dated 12.10.2018, there was no cloud on other financial transactions, which were much before of passing of the interim order. There can be no illegality with regard to assignment of debt in favour of Respondent No.2 with regard to above two transactions and there being default with regard to above two transactions, which is an admitted fact, no exception can be taken to the admission of Application under Section 7 of the Code. The three loans which were assigned by Altico in favour of Respondent No.2 were severable and even if the Facility Agreement dated 14th May, 2018, which was sought to be given effect to be excluded from consideration, the assignment cannot be held to be illegal with regard to other two transactions that is Debenture Trust Deeds dated 04.12.2015 and 24.11.2016. There being default under the above two transactions being INR 111,55,88,511 + INR 2,73,76,59,666 as mentioned in Column 2 of Part-IV of the Section 7 Application and default being more than ₹ 1 crore, the Application has rightly been admitted by the Adjudicating Authority. No error has been committed by the Adjudicating Authority in admitting the Section 7 Application - appeal dismissed.
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