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2024 (2) TMI 677 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIAdmissibility of section 7 application - CIRP - existence of debt and default or not - whether the Adjudicating authority was right in admitting the application under Section 7 of the Code of the Respondent No. 1 or the application should have been rejected on the ground that there was no debt and default by the Corporate Debtor? - HELD THAT:- After declaring the account of the Corporate Debtor as NPA, by allowing the sanction or renewing ‘Holding on Operation’ with various cut-back portions of the Respondent No. 1 could not treated on part of any debt and default. It is opined that permission by the Respondent No. 1 such ‘Holding on Operations’ are being conducted as normal baking practices and does not give any right to the Corporate Debtor in denying the repayment of debt and default on such account have to be factored into consideration by the Adjudicating Authority. It is found from the Impugned Order that the Adjudicating Authority has gone into these aspects and thereafter correctly came to the conclusion of debt and default. The total outstanding principals amount was Rs. 8.77 Crores and outstanding interest component were Rs. 3.61 Crores thus the total outstanding dues payable by the Corporate Debtor to the Respondent No. 1 was Rs. 12.38 Crores, which is more than the threshold limit of Rs. 1 Crore as provided in the Code for accepting the application filed under Section 7 of the Code - the Corporate Debtor has indeed acknowledged and confirmed the loans credit facilities availed by it from the Respondent No. 1. There are no error in the Impugned Order - appeal dismissed. Approval of the Resolution Plan which was favourably considered by the CoC and approved by the Adjudicating Authority - payment of Rs. 1 Crore over and above the admitted claims of the Respondent No. 2 which allegedly was done at the cost of the Shareholders of the Corporate Debtor i.e., Promoters - HELD THAT:- It is up to the Resolution Applicant who tries to revive the Corporate Debtor as per his own scheme and provide the amount in the Resolution Plan which should be sufficient to meet the CIRP costs, the payment to the Financial Creditors, Operational Creditors, Statutory dues, workmen dues employees dues and payment towards dues of the other creditors to the extent possible. Such Resolution Plan is submitted for consideration of the CoC which applies its commercial wisdom and send the same through the Resolution Professional for approval of the Adjudicating Authority. The Resolution Plan has fairly distributed the amount and taken care of almost all Stakeholders strictly in accordance with the provisions of the Code - the Adjudicating Authority has carefully analysed various facts and laws while approving the Resolution Plan of the Respondent No. 3 including the aspect of payment of Rs. 1 Crore over and above the admitted claims for the Respondent No. 2. There are no error in the Impugned Order. The appeal is devoid of any merit, therefore, it deserves to the dismissed.
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