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2020 (3) TMI 1056 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt or not - pre-existing dispute or not - HELD THAT:- The applicant granted several facilities including cash credit facility to the corporate debtor and the corporate debtor fully availed those facilities. Those facilities carry interest applicable from time to time as per the terms and conditions mentioned in the sanction letters. Therefore, the amount due to the financial creditor from the corporate debtor is a financial debt. In the instant application, from the material placed on record by the applicant, this Authority is satisfied that the corporate debtor committed default in paying the financial debt to the applicant. As can be seen from the written communication of the proposed insolvency resolution process, no disciplinary proceedings are pending against him - In the instant case, the documents produced by the financial creditor clearly establish the "debt". Section 13(2) notice issued by the financial creditor clearly indicates that entire debt was recalled. There is a default on the part of the corporate debtor in payment of the "financial debt". Thus, there is existence of default and that the application under section 7(2) of the Code is also complete in all respect - the petitioner/financial creditor having fulfilled all the requirements of section 7 of the Code, the instant petition deserves to be admitted - petition admitted - moratorium declared.
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