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2018 (3) TMI 1913 - NATIONAL COMPANY LAW TRIBUNAL — MUMBAI BENCHMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial debt - non-performing asset - Corporate Applicant has filed the application - HELD THAT:- The I and B Code, 2016 was enacted to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, that too in a time bound manner, for maximization of value of assets of a corporate debtor. The purpose of CIRP is to promote entrepreneurship, side by side to balance the interest of all stakeholders. A petition either filed under section 7, under section 9 or under section 10 is to be admitted to achieve the said goal also to consider the objectives enshrined in the Preamble and the purpose for which this Code came into operation - The hon'ble court has not directed the respondent restraining to take due recourse provided under any provision of law so that the liability of the petitioner GTL be secured, if possible, along with other stakeholders. Any judicial authority shall encourage such move on the part of the debtor. Filing of the petition under section 10 is a step towards the said direction. As far as the corporate debtor's filing of this petition is concerned, this is not a case that the fact about the order of the hon'ble Delhi Court was concealed. Considering the voluminous evidences in 8 Volumes annexed along with the application and in the light of the provisions of section 10 of the Code I hereby hold that the conditions as prescribed under section 10 of the Code have duly been fulfilled. Since this is a petition of the "corporate debtor", therefore, the insolvency process shall commence as prescribed under section 10 of the IBC, 2016. On one hand the existence of financial debt as well as operational debt is proved, on the other hand the occurrence of "default" is also established. The corporate debtor had failed to pay the amounts due and also failed to adhere to or comply with the other terms of facility agreements. The financial debts have been classified as "non-performing asset" in the books of the financial creditor. The petition under consideration therefore deserves "admission". Petition admitted - moratorium declared.
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