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2022 (12) TMI 775 - NATIONAL COMPANY LAW TRIBUNAL , MUMBAI BENCHMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - whether the Petition under Section 7 is maintainable on the ground of Limitation? - HELD THAT:- It is seen from the records that the cause of action arose on 04.07.2014 wherein the Financial Creditor issued a demand recall notice and called upon the Corporate Debtor to repay the dues and the Petition is filed in the year 2019. To corroborate the same, the Financial Creditor has placed on record Financial Statements for the period 01.04.2014 to 31.03.2015, 01.04.2018 to 31.03.2019 Annual Report for period 2019 to 2020 and Annual Report for period 2020 to 2021 wherein the Corporate Debtor has acknowledged the debt owed to the Financial Creditor and the amount therein is set out as Principal amount as secured loan owed by the Corporate Debtor - It is clear that the petition filed is well within Limitation period and the same has been demonstrated vide the Financial Statements as annexed to the petition. There were no cogent evidence to show that the Application is barred by Limitation as alleged by the Corporate Debtor - Further, it is seen from the records available that the Financial Creditor has established that the various term loans/Credit facilities were duly sanctioned and duly disbursed to the Corporate Debtor but there is no payment of Debt on the part of the Corporate Debtor. Hence, owing to the inability of the Corporate Debtor to pay its dues, this is a fit case to be admitted u/s 7 of the I&B Code. Considering the above facts and on perusal of documents/ papers placed before the Bench, it is concluded that the nature of Debt is a “Financial Debt” as defined under section 5 (8) of the Code. It has also been established that there is a “Default” as defined under section 3 (12) of the Code on the part of the Debtor. The two essential ingredients, i.e. existence of ‘debt’ and ‘default’, for admission of a petition under section 7 of the I&B Code, have been met in this case - it is found that the Petitioner has not received the outstanding Debt from the Respondent and that the formalities as prescribed under the Code have been completed by the Petitioner, we are of the conscientious view that this Petition deserves ‘Admission’. Petition admitted - moratorium declared.
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