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2021 (9) TMI 415 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - pre-existing dispute or not - service of demand notice - HELD THAT:- The Adjudicating Authority ought not to have directed the Respondent to settle the claim of the Petitioner within a period of 3 months from the date of receipt of the copy of the Order. Further, the Learned Adjudicating Authority observed that the Application filed by the Appellant/Applicant is with an intention to recover an alleged balance amount, which is against the object of Code, and the settled position of the law. This Tribunal is of the view that the said finding is patently illegal and unreasonable. Further, the Learned Adjudicating Authority in the Impugned Order observed that the Respondent has paid part payments with an assurance to clear the balance in short time. The said observation is also illegal without application of mind. It is a settled Law that when a debt and default is proved, the Adjudicating Authority has to admit the Application and initiate ‘Corporate Insolvency Resolution Process’ against the Corporate Debtor otherwise it is complete. The Learned Adjudicating Authority having noticed that there is a debt and default, passed the Impugned Order which is non-application of mind and accordingly this ‘Tribunal’ is of the view that it is patently illegal and cannot with-stand to the scrutiny of law - Respondent failed to establish the existence of dispute prior to issuance of ‘Demand Notice’. This ‘Tribunal’ comes to a conclusion that it is a fit case to be admitted by the Adjudicating Authority - Application admitted - moratorium declared.
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