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2019 (7) TMI 104 - Tri - Insolvency and BankruptcyAdmissibility of application - initiation of Corporate Insolvency Resolution Process - default in payment of dues - time limitation of service of order - HELD THAT:- On perusal of the material available on record it is found that service of notice is complete. That, despite issuance of notice by the petitioner, the respondent has not made payment of outstanding amount nor raised any dispute. That, the last invoice raised upon the respondent is dated 21.04.2018 and, therefore, the petition is filed well within time. The scheme of the Code is to ensure that when a default takes place, in the sense that a debt becomes due and is not paid, the Insolvency Resolution Process begins. Default is defined in Section 3(12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part thereof or instalment amount. Even otherwise, the important condition precedent is an occurrence of a default. On perusal of the documents on record, it is evident that the default has occurred as stated hereinabove i.e. the execution of settlement agreement by the corporate debtor and the part payment thereon confirming the operational debt is due and payable. The Application filed by the Applicant is complete in all respects - Adjudicating Authority is of the view that it is a fit case to initiate Insolvency Resolution Process by admitting the Application under Section 9(5)(1) of the Code. Petition admitted - moratorium declared.
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