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2021 (4) TMI 1124 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - Financial Creditors or not - NPA - time limitation - HELD THAT:- It is seen that there is no dispute that the Corporate Debtor has taken Credit facilities from the Financial Creditor on 28.10.2011. It is also not disputed that the Corporate Debtor has secured Credit Facilities by equitable mortgage of immovable property. The filing of the proceeding before the DRT in 2018 under SARFAESI Act 2002 are also not disputed. The contention of the Corporate Debtor is that the Application is hit by law of limitation as the Financial Creditor has declared the loan account as NPA on different dates i.e. on 05.12.2017 and 04.04.2018. In the instant case the loan account was classified as NPA in two different dates i.e. on 05.12.2017 and 04.04.2018 and the Application was filed on 04.12.2020, even though the two dates are considered as the default date the Application is filed well within the time of 3 years. Therefore, the contention of the Corporate Debtor regarding limitation has no legs to stand. It is clear that when the adjudicating authority is satisfied that a default has occurred the Application must be admitted unless it is incomplete. In this case, the Application is complete in all respects as there is default on the part of the Corporate Debtor. Therefore, as per Section 7(5)(a) of the code, the present application filed under Section 7 of the I&B Code,2016 deserves to be admitted against the Corporate Debtor - Petition admitted - moratorium declared.
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