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2022 (9) TMI 1007 - Insolvency & Bankruptcy
Maintainability of application - Suspension of initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - Section 10A of IBC - HELD THAT:- Going into the legislative intent and the proviso to Section 10A of the code, which stipulates that "no application shall ever be filed" for the initiation of the CIRP "for the said default occurring during the said period, we are of the considered view that the expression "shall ever be filed" is a clear indicator that the intent of the legislature is to bar the institution of any application for the commencement of the CIRP in respect of a default which has occurred on or after 25 March 2020 for a period of six months, extendable up to one year as notified.
On a perusal of the provision of section 10A of the Code, it is apparent that the provision bars the filing of an application in a situation, where the default has occurred during the period from 25.03.2020 to 24.03.2021 - There is no dispute that even a notice for curing the said default and to submit fresh security was also given, but the same was also not complied with or cured on behalf of the respondent. Therefore, there was specific default on the part of the respondent for not providing the security against the loan facility availed. The said default cure notice was given on 20.10.2020, but the said impairment of security was not cured in due time. Thereafter, the recall notice dated 15.12.2020 was issued, calling upon the corporate debtor to repay the loan amount within 7 days of receipt of this notice. Thus, the default on the part of corporate debtor was not only committed on 20.10.2020, but also subsequently, after 7 days of the receipt of the loan recall notice dated 15.12.2020.
On a conjoint reading and meticulous perusal of the clause 12.1 (Events of Default) and clause 12.2 (consequences of event of default) of loan agreement dated March 31, 2020, Cure Notice dated October 20, 2020, Loan Recall Notice dated December 15, 2020, Cheques Dishonored Communication from the bank and the Notice dated 08.04.2021 issued to the corporate debtor, the impairment of security comes within the preview of 'Event of Default', which was not cured by the corporate debtor even after the issuance of the cure notice dated 20.10.2020 by the applicant to either perfect the security or provide an alternative security, consequent to which a loan recall notice dated 15.12.2020 was issued by the applicant calling upon the corporate debtor to repay the entire loan amount due as on 12.2.2020 amounting Rs. 224,63,86,228/-.
Since, the instant petition is not maintainable in view of the provision of Section 10A of the Code, 2016, this Adjudicating Authority is not willing to go into the merits of the present case - Petition dismissed.