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2022 (7) TMI 1190 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - levy of the pendente lite interest claimed by the Financial Creditor - HELD THAT:- The said pendente lite interest has not been claimed by the Financial Creditor in its application under Section 7 of the Insolvency and Bankruptcy Code, 2016. It is trite law that insolvency proceedings are not recovery proceedings and the same should not be reduced into a mere recovery proceedings in as much as the entire substratum of the Insolvency and Bankruptcy Code, 2016 would fail if the same is allowed to be misused by creditors to extort money from the Corporate Debtor with the threat of initiation of Corporate Insolvency Resolution Process - It is imperative to note that Corporate Insolvency Resolution Process of a corporate debtor is to be commenced by this Tribunal after observing all the necessary facts and considering the expedience of initiation of CIRP as has been laid down in Vidarbha Industries Power Limited v/s. Axis Bank Limited [2022 (7) TMI 581 - SUPREME COURT]. On perusal of the contents of the Form 1 filed by the Financial Creditor and the supplementary affidavit filed on behalf of the Corporate Debtor, it is clear that the Corporate Debtor has paid the entire sums claimed by the Financial Creditor. The fact that such payment has been accepted to the full satisfaction of the Financial Creditor is further apparent from the statements made by the Financial Creditor. Since the entire amounts as claimed by the Financial Creditor in its application under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been paid by the Corporate Debtor, there exists no financial debt within the meaning of Section 5 (8) of the Insolvency and Bankruptcy Code, 2016 - the instant petition is dismissed with no order as to costs as no financial debt within the meaning of Section 5 (8) of the Insolvency and Bankruptcy Code, 2016 subsists.
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