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2022 (8) TMI 711 - Tri - 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:- On perusal of the records it is found that the corporate debtor has neither replied nor contested the debt as per legal notice dated 25.01.2020 by the applicant. In the balance sheet as at 31.03.2019, under the head “Notes forming the part of the balance sheet”, the corporate debtor has shown Rs. 9,03,61,824/- as unsecured loan from the applicant thereby acknowledging the debt. Similarly, under the head “Notes forming part of accounts”, the corporate debtor has acknowledged that during the year company has received ECB loan amount Rs. 4.75 crore (ROI at LIBOR + 3%) from the applicant for the purpose of expansion of existing facilities and acquiring capital goods as per the agreement between both the companies. Though the Joint Venture Agreement (JV) may be still in existence, but, if the default of debt by one JV partner to another is proved, there is no ban in admitting the application. The clause of Arbitration in JV Agreement also cannot be taken on defence to oppose the application under Section 7 since the default of financial debt is established by the admission of corporate debtor in its own records and documents. The present application is complete in terms of Section 7 (5) of the Code. The applicant is entitled to claim its dues, establishing the default in payment of the financial debt beyond doubt - the present application is admitted and CIRP is ordered to be initiated against corporate debtor - Moratorium declared.
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