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2022 (3) TMI 512 - AT - 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 - service of demand notice - HELD THAT:- In the present case, the ‘Corporate Debtor’ had not paid any instalment and pursuant to the terms of the ‘One-time Settlement’ and in fact, the ‘One time Settlement’ which was sanctioned earlier, got annulled. In fact, the 1st Respondent/Financial Creditor/Bank projected the MA/61/2020 before the ‘Debt Recovery Tribunal’, bringing to its notice in spite of the fact that the ‘Debtor’ had failed to adhere to the terms of ‘One-time Settlement’ and ‘Joint Compromise Memo’ and hence relief was sought from the ‘Debt Recovery Tribunal’ to pass an order for the same claimed in ‘Original Application’. In the present case, it cannot be brushed aside that the balance amount standing as on date 31.03.2020 was at ₹ 197.96 Crores and in view of the fact that the ‘One Time Settlement’ was cancelled through the Letter of the Bank and because of the fact that in the ‘Audited Balance Sheet’ in respect of the Financial Year 2019-20, the ‘Corporate Debtor’ himself had proceeded to make a relevant mention among other things that “the Company has entered into ‘One Time Settlement’ dated 01.08.2019 with the State Bank of India to settle the outstanding SBI Loan (NPA) and interest due with ‘One Time Payment’ of 112.00 Crores + cash margin of BG Outstanding to 2.7 Crores to be paid before 31st January 2020.” If the ‘Adjudicating Authority’ is subjectively satisfied that there was Debt due and payable in law and in fact, by the Corporate Debtor to in favour of the 1st Respondent/Bank/Financial Creditor then, in law, the ‘Adjudicating Authority’ is left with no other alternative but to admit the application under the I&B Code, 2016. On going through the ‘Impugned Order’ passed by the ‘Adjudicating Authority’ (National Company Law Tribunal, Hyderabad Bench, Hyderabad) is of the earnest opinion that the ‘Adjudicating Authority’ was right in admitting the Application under Section 7 of the Code filed by the 1st Respondent/Bank and the said order is free from any legal infirmities - Appeal dismissed.
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