Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (4) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 312 - 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:- In the present case it is seen that there is a clear admission of non-payment of balance part debt and therefore there has been occurrence of default in payment of the claimed debt by the respondent corporate debtor - n the present case admittedly the demand notice in Form-3 as per section 8 of the Code was sent on 27-9-2019. It is thus seen that before filing the present application under section 9 of the Code, requisite notice under section 8 was duly served on the Respondent. In response to section 8 notice, respondent corporate debtor replied on 07-10-2019 acknowledging the outstanding amount and expressed its inability to pay the debt due to financial difficulty. In other words, the corporate debtor had not disputed the claim in its reply given in terms of sub-section (2) of section 8 of the Code. It is seen that the application preferred by applicant operational creditor is complete in all respect. The material on record clearly goes to show that the respondent committed default in payment of the claimed operational debt even after demand made by the applicant operational creditor. Respondent company also did not raise any dispute regarding the existence of operational debt. In fact, the claim of default committed by the corporate debtor has not been denied. Once the application is complete and in the absence of any dispute and with the subsistence of default, the application is liable to be admitted - on fulfilment of requirements of section 9 (5) (i) (a) to (d) of the Code, the present application is admitted. Application admitted - moratorium declared.
|