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2022 (4) TMI 571 - NATIONAL COMPANY LAW TRIBUNAL , MUMBAI BENCHMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - application barred by time limitation or not - service of demand notice - genuineness of the Mortgage Deed and charging of higher interest by the Corporate Debtor. Barred by time Limitation in terms of Limitation Act, 1963 - HELD THAT:- The letter which was issued by the Corporate Debtor to the Financial Creditor clearly highlights the existence of Debt due and Corporate Debtor's willingness to settle the same. There are clear contradictions in what the Corporate Debtor has contended before this bench and what it has communicated to the Financial Creditor - It is clear from the records that the Corporate Debtor has time and again acknowledged the debt which was due and payable to the Financial Creditor - this bench finds no merit in the contentions of the Corporate Debtor w.r.t. the petition being barred by limitation in terms of the Limitation Act, 1963. Non-issuance of Demand Notice - HELD THAT:- The present application has been filed under Section 7 of the I&B Code. Issuance of Demand Notice being one of the pre-requisites to file an application is a requirement under Section 9 of the I&B Code and not under Section 7 - this bench finds no merit in the contentions of the Corporate Debtor w.r.t. the petition being non-maintainable due to non-issuance of Demand Notice for the alleged default/claim. Genuineness of the Mortgage Deed and charging of higher interest by the Corporate Debtor - HELD THAT:- It can be clearly seen that it is not in the spirit of the I&B Code for this bench to determine the whether the Mortgage Deed entered into was genuine or that higher interest was charged by the Corporate Debtor. It is the role of the Resolution Professional to determine the validity of these claims made by the Corporate Debtor - there are no merit in the contentions of the Corporate Debtor w.r.t. the petition being non-maintainable due to the Mortgage Deed entered into not being genuine or higher interest being charged by the Corporate Debtor as opposed to what was agreed upon. Thus, it is clear that financial debt amounting to more than ₹ 1,00,00,000/- is due and payable by the Corporate Debtor to the Applicant. There is default by the Corporate Debtor in payment of debt amount. Therefore, we do not have any objection on record against the application filed for initiation of CIRP against the corporate debtor. Hence, the Application filed by the Financial Creditor is hereby admitted - the application is complete and has been filed under the proper form. The debt amount is more than Rupees One Crore and default of the Corporate Debtor has been established and the application deserves to be admitted. Application admitted - moratorium declared.
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