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2022 (5) TMI 14 - NATIONAL COMPANY LAW TRIBUNAL , AHMEDABAD BENCHMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - time limitation - HELD THAT:- The main objections raised by the proposed interveners and loan recall notice dated 17.01.2018 is baseless, illegal and hence, there is no default committed by the respondent corporate debtor. There is also an issue raised of limitation in respect of financial debt which according to Corporate debtor is time barred since corporate debtor was declared NPA on 31.03.2012 and this application is filed in 2018 much later after expiry of the limitation. Further, the respondent/interveners have raised objection regarding legality of the loan agreement dated 27.04.2017. Further, to note that the interveners/respondent corporate debtor never disputed that the loan amounts were disbursed by the applicant financial creditor, even the loan disbursal after the execution of additional loan agreement dated 27.04.2017 have never been denied by the corporate debtor. On the contrary corporate debtor, promoters and strategic investors are shouting loud that money was disbursed after due diligence and on GOMP standing as guarantors along with recommendation from Ministry of Power and Finance. The only objection is that debt is not due, because of the conduct of the applicant while sitting in management of corporate debtor, causing such default which does not hold any water. In the present matter the applicant has succeeded in demonstrating that the debt is payable and default is committed by the respondent time and again. The default of financial facilities of various other financial creditors are also committed by corporate debtor who also have filed various applications under section 7 of the Code pending before this Bench. The main objection of the respondent is that the default is committed by applicant itself, while sitting in management of the corporate debtor since, applicant had major equity in the corporate debtor - Admittedly, as in reply, the respondent never denied the fact of debt and default, but has also admitted debt and default stating default is time barred in view of all of Corporate debtor becoming NPA in 2012 and application filed in 2018. The Corporate debtor pointed out the conduct of applicant because of which default had occurred, which cannot be determined in the proceeding under Section 7 of the Code. The registered office of the Corporate Debtor is situated at Madhya Pradesh and therefore this tribunal has jurisdiction to entertain and try this application - The date of default as per Form 1 part IV is 15/01/2018 and application is filed in February, 2018 hence is within limitation and not barred by limitation It is evident from the record that the application has been filed on the proforma prescribed under Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with Section 7 of IBC and is complete. Evidently, a default has occurred and the application under Section 7 is complete - application admitted - moratorium declared.
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