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2020 (3) TMI 1054 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - HELD THAT:- It is true that the proceedings under the Code are not in the nature of recovery. In the present application the financial creditor is seeking initiation of corporate insolvency resolution process by making prayer that all the financial creditors, operational creditors and other stakeholders 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. Therefore, by initiation of corporate insolvency resolution process the financial creditor is 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 application would amount to recovery of the debts by the financial creditor. The applicant-financial creditor had disbursed the money to the corporate debtor as consideration for purchase of a residential unit. Though a considerable long period has lapsed and the said possession of unit is not handed over, it is accordingly held that corporate debtor has committed default. The outstanding financial debt 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. Application admitted - moratorium declared.
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