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2019 (1) TMI 728 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - default committed by the Corporate Debtor - Held that:- The proceedings under the Code are not in the nature of recovery. In the present application the Financial Creditors are seeking initiation of Corporate Insolvency Resolution Process by making prayer that all the Financial Creditors, Operational Creditors and others may raise their claims and if Corporate Financial Restructuring is possible then within the stipulated period it may be explored failing which the due process of law is to take its course. By initiation of Corporate Insolvency Resolution Process the Financial Creditors are only highlighting the default committed by the Corporate Debtor with respect to its inability to pay. The same is required to be remedied. Therefore, it cannot be concluded that the filing of the present petition would amount to recovery of the debts by the Financial Creditor. On 23.10.2018, we have granted time to the Corporate Debtor to come forward and prevail upon the Financial Creditors to accept its offer and fixed the date for hearing on 05.12.2018. However, on 05.12.2018 there was no whisper of settlement. We further granted time to the Corporate Debtor to do so and fixed the date for hearing on 02.01.2019. However, again on 02.01.2019 there was no whisper of settlement. Corporate Debtor did not appear to argue the matter. We heard the arguments and reserved the order. During the previous interregnum period between 23.10.2018 to 02.01.2019 and again after lapse of four days no meaningful results have followed. The object of the 'Code' is to resolve the insolvency issue which cannot be achieved unless the petition is admitted. The resolution as against liquidation would only be possible if the Corporate Insolvency Resolution Process is triggered and efforts in that direction are made. The admission of the petition cannot be successfully resisted on such a flimsy ground. Therefore, we have no hesitation to reject the defence raised on behalf of the Corporate Debtor. Discussion and the material placed on record it is confirmed that applicants-financial creditors had disbursed the money to the respondent corporate debtor as consideration for purchase of a residential flat. Though a considerable long period has lapsed even the principal amount disbursed has not been repaid by the respondent corporate debtor as per the provision of clause II of the Flat Buyer's Agreement. It is accordingly held that respondent corporate debtor has committed default in repayment of the outstanding financial debt which exceeds the statutory limit of rupees one Lakh. Thus, the application warrant admission as it is complete in all respects. Accordingly, in terms of Section 7 (5) (a) of the Code, the present application is admitted.
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