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2022 (5) TMI 552 - 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:- It is no longer res Integra that proceedings under Section 7 of IBC, 2016 is filed for Insolvency Resolution of the Corporate Debtor and not for recovery of money from the Corporate Debtor. In so far as Application under Section 7 of IBC, 2016 is concerned, the Adjudicating Authority is required to satisfy that there is a debt and default on the part of the Corporate Debtor. Once the same is adjudicated, then the Adjudicating Authority is required to initiate Corporate Insolvency Resolution Process as against the Corporate Debtor in terms of Section 7(5) of IBC, 2016. In view of the same, application filed by the Respondent is devoid of merits and accordingly stand dismissed. The financial debt is proved by the Financial Creditor and the default is being committed on the part of the Corporate Debtor, this Tribunal is left with no other option than to proceed with the present case and initiate the Corporate Insolvency Resolution Process in relation to the Corporate Debtor. The Application stands admitted in terms of Section 7(5) of IBC, 2016 and the moratorium shall come in to effect as of this date.
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