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2020 (3) TMI 1131 - 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:- Section 7(5) of the Code provides for admission of the application where the Adjudicating Authority is satisfied that (a) a default has occurred ; (b) the application under sub-section (2) of section 7 is complete ; (c) there is no disciplinary proceedings pending against the proposed resolution professional. The satisfaction of the three conditions is being examined: The first condition is that a default has occurred. The default in repayment of debt is supported by account statements filed by the bank at annexure P7 and certificate under section 2A(a) and 2A(b) of the Bankers' Books Evidence Act, 1891 in support of the account statements appended with the petition. It is the case of the respondent-corporate debtor that the account of the respondent-corporate debtor was wrongly declared as non- performing asset while one time settlement proposal was kept pending by petitioner-bank. It is stated by the petitioner-bank that no payment has been made towards the settled amount and the bank has revocated such proposal accordingly. Thus, we do not see any merit in the contention of the respondent-corporate debtor and pendency of any one time settlement cannot be an embargo in triggering the provisions under the Code - It is the settled principle of law that CIRP is not a proceeding for recovery of money nor a suit or litigation. Hence, the interim order dated June 26, 2018 cannot come in the way of this Adjudicating Authority in initiation of CIRP against the respondent-corporate debtor, if all other requirements of the Code are satisfied. The second condition is that the application under section 7(2) is complete - it is already established that the application is complete. The third condition is that there are no disciplinary proceedings pending against the proposed resolution professional. In the present case, Shri Neeraj Bhatia, IBBI/IPA-001/IP-P00824/2017-18/11400, has been proposed as interim resolution professional. Form 2 filed by the proposed interim resolution professional is at page 374A of the petition. Shri Neeraj Bhatia has certified that there are no disciplinary proceedings pending against him with the Board or Indian Institute of Insolvency Professional of ICAI. He has also affirmed that he is eligible to be appointed as a resolution professional in respect of the corporate debtor in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporation Persons) Regulations, 2016. In view of the satisfaction of the conditions provided for in section 7(5) of the Code, the petition for initiation of CIRP in the case of M/s. S. A. Gold Ispat P. Ltd., is admitted - petition admitted - moratorium declared.
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