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2021 (5) TMI 277 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - Assignment of debt - existence of debt and dispute or not - HELD THAT:- The Petitioner being the assignee under the assignment deed dated 30.03.2019 and 05.11.2019 have taken over the loan the term loans of DNSB(original Lender), cash credit facilities granted by DNSB. The said term loan and cash credit loan accounts of the Corporate Debtor were declared as NPA as on 31.01.2019 and 31.03.2019. The Petitioner post assignment of debt issued Recall Notice dated 10.01.2020 to the DNSB demanding the outstanding liabilities of ₹ 8,60,09,164.14/- in the term loan and outstanding dues of cash credit dues of ₹ 27,83,07,159.48/-. The Corporate Debtor filed its reply admitting the liability and granted loan by the Petitioner by the DNSB which has assigned the Petitioner herein and further requested the time of 6 months for the repayment of entire monies. In view of the admission of liability by the Corporate Debtor on 16.04.2021 and the fact that there is a debt and default of non-payment of amounts under the term loan and the cash credit facility, both the loan accounts were thus declared as NPA as on 31.01.2019 and 31.03.2019. The Corporate Debtor in its reply sought six months' time to repay the debt, there is no denial of sums borrowed and default of non-payment. This bench is of the opinion that all the ingredients of Section 7 are satisfied and that the amounts disbursed by Petitioner to the Corporate debtor under two different facilities (term loan and Cash Credit facility) remain outstanding, owing to the default of non-payment by the Corporate Debtor. Hence, the Petition is admitted. The nature of Debt is a "Financial Debt" as defined under section 5 (8) of the Code. It has also been established that there is a "Default" as defined under section 3 (12) of the Code on the part of the Debtor. The two essential qualifications, i.e., existence of 'debt' and default', for admission of a Petition under Section 7 of the I&B Code, have been met in this case. Besides, the Company Petition is well within the period of limitation. This petition is admitted. Petition admitted - moratorium declared.
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