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2022 (8) TMI 230 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtors failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - whether the Respondents claim fall within the category of Financial Creditors and whether there exists a debt and any default occurred there at? - HELD THAT:- In the present case, admittedly, the Respondents are the Financial Creditors within the meaning of sub-section (7) of Section 5 of the I&B Code, 2016 and the debt borrowed by the Corporate Debtor is a financial debt within the meaning of sub-section (8) of Section 5, which establishes from the loan agreements all dated 04.12.2019 and from the information utility record. Admittedly, the debt has not been repaid to the Financial Creditors - The Learned Counsel for the Appellant contend that there is a collusion between the Respondents/Financial Creditors and the Corporate Debtor is concerned, the NCLT’s being the Adjudicating Authorities under the IBC and exercising its summary jurisdiction, cannot go into the aspect of collusion, fraud etc. The Adjudicating Authority (NCLT’s) couched with the powers to be exercisable as enshrined in the I&B Code, 2016. For the purpose of entertaining Sections 7, 9 or 10, of the I&B Code, the Adjudicating Authority has to see whether debt is payable on the part of the Corporate Debtor and committed default. In such cases, the Adjudicating Authority invariably admit the application under the above provisions of law. This Tribunal is of the view that in the present case, the debt and default has been proved and the Adjudicating Authority rightly admitted the Application under Section 7. The debt has been proved from the documents available on records including information utility and the default has occurred in clear terms - appeal dismissed.
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