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2019 (7) TMI 507 - AT - Insolvency and BankruptcyAdmissibility of petition - initiaton of CIRP - Section 7 of the Insolvency and Bankruptcy Code, 2016 - no default in existence - HELD THAT:- It is made clear that the application under Section 7 is not a petition. In fact, no affidavit is required to be made, nor any pleadings is to be made like a litigation. From the decision of the Hon’ble Supreme Court in M/S. INNOVENTIVE INDUSTRIES LTD. VERSUS ICICI BANK & ANR. [2017 (9) TMI 58 - SUPREME COURT], it is clear that the meaning of “debt” if read along with Section 3(11) means “claim” which includes even if it is disputed claim. As per the said decision, if the Adjudicating Authority is satisfied that a default has occurred, the ‘Corporate Debtor’ is entitled to point out that a default has not occurred in the sense that the “debt”, which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. Thus, it is clear that even when there is a default then the only plea that can be taken is that the debt is not payable in law or in fact. In the present case, it is not the case of the Appellants that debt is not payable in law or in fact - there is sufficient record shown in Part IV and Part V on the basis of that Adjudicating Authority has satisfied that the Form-1 is complete. There is no merit in the appeal - appeal dismissed.
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