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2022 (10) TMI 12 - 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 - time limitation - HELD THAT:- It is abundantly clear that the Corporate Debtor had acknowledged its obligation under OTS for an amount of Rs. 2.50 Crore as is evident from the order of the Hon’ble Division Bench in INTERNATIONAL ASSET RECONSTRUCTION COMPANY PVT. LTD. VERSUS M/S ECLAT INDUSTRIES LTD., THE STATE OF BIHAR THROUGH ITS CHIEF SECRETARY, DEPARTMENT OF INDUSTRIES, INDUSTRIES DEVELOPMENT COMMISSIONER, DIRECTOR, OFFICE OF THE DIRECTORATE OF TECHNICAL DEVELOPMENT DEPARTMENT OF INDUSTRIES, BANK OF BARODA (OPERATING AGENCY) THROUGH ITS CHIEF MANAGER, CANARA BANK THROUGH ITS CHIEF MANAGER, PATNA [2017 (11) TMI 2004 - PATNA HIGH COURT]. It looks that no further appeal was filed by the Corporate Debtor challenging the decision. The contention of the Corporate Debtor is found to be incorrect, in view of the factual position stated hereinabove and which is supported by number of documents. It is a clear case, where, despite opportunities given to the Corporate Debtor to pay the balance amount of OTS, the Corporate Debtor failed to pay the balance amount and the OTS was revoked by the Bank, as is evident from the letter dated 23.07.2014. It is also clear from the documents shown above, the Corporate Debtor was merely seeking extension, one after another and this could not continue for all times to come as the Financial Creditor was required to invoke its remedy under law within the period of limitation and which clearly happened in the present case. There are no hesitation to hold that the present application which was filed before this Adjudicating Authority on 12.12.2019 is well within the period of limitation as is shown from the facts, dates and documents above, the limitation period from time to time stood extended. The present petition made by the Financial Creditor is complete in all respects as required by law. The Petition establishes that the Corporate Debtor is in default of a debt due and payable and that the default is more than the minimum amount stipulated under section 4 (1) of the Code, stipulated at the relevant point of time. Application admitted - moratorium declared.
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