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2020 (2) TMI 910 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - pre-existing dispute or not? - HELD THAT:- The Financial Creditor has succeeded in establishing a case for triggering the Corporate Insolvency Resolution Process. The transactions alleged to have taken place between the Respondent and the Petitioners as placed on record as Annexure-2 of the written objection are not supported by any banking transaction as to when and where the cheques were drawn by the Respondent in favour of the Petitioners. These are only bald averments made and no document has been placed on record in support thereof. On the basis of these bald averments no finding could be recorded in these summary proceedings to conclude that any amount has ever been given to the Petitioners as pleaded in the written objections. The Tribunal is not an adjudicating authority to ascertain the quantum of amount of default or to pass decree as to how much amount is actually due to the Petitioners-Financial Creditors. The Code requires the adjudicating authority to only ascertain and record satisfaction in an adjudication under Section 7 of the Code as to the occurrence of default before admitting the petition. Besides in a petition under Section 7 of the Code, it does not matter that the debt is disputed so long as the debt is due and payable. After a reading of Section 7 of the Code along with Rule 4 (2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, we are satisfied that a default has occurred and the application under sub-section 2 of Section 7 is complete. The IRP proposed does not have any disciplinary proceedings pending against him - Petition admitted. Petition admitted - moratorium declared.
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