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2022 (5) TMI 993 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - HELD THAT:- There being clear stipulation that on any of the default Bank reserve its right to cancel the compromise settlement and will be entitle to exercise against the borrowers/ guarantors all rights and remedies available prior to the compromise settlement as per applicable law. The ‘Default Clause’ clothe the Financial Creditor the right to file Application under Section 7 which was done after 30.06.2020 when default was committed. The Appellant submitted that there was no cancellation of the compromise OTS dated 28.05.2020, hence, it cannot be said that there was any debt due on the Corporate Debtor - said submission cannot be accepted in view of the clear stipulation of Clause 6 'Default Clause', the Bank has every right to proceed and exercise all its rights when default is committed. It is not the case that no default was committed on 30.06.2020 nor there is any material on record to indicate that payment as was required to be paid on 30.06.2020 was paid - there are no error in the order of the Adjudicating Authority admitting Section 7 Application - appeal dismissed.
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