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2019 (9) TMI 588

..... :- As held in the case of M/S. INNOVENTIVE INDUSTRIES LTD. VERSUS ICICI BANK & ANR. [2017 (9) TMI 58 - SUPREME COURT], if there is a ‘debt’ payable by the ‘Corporate Debtor’ and ‘default is committed and default is of more than Rupees One Lakh, it is open to the Adjudicating Authority to admit the application u/s 7 based on the records. Learned counsel for the Appellant submitted that the matter should be remanded to the Adjudicating Authority to find out whether the ‘debt’ is payable or not. However, such prayer cannot be accepted as no plea was taken up by the ‘Corporate Debtor’ that no ‘debt’ is payable in the eyes of law or in fact. On the other hand, the ‘debt& .....

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..... kes place, in the sense that a debt becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3(12) in very wide terms as meaning nonpayment of a debt once it becomes due and payable, which includes non-payment of even part thereof or an instalment amount. For the meaning of debt , we have to go to Section 3(11), which in turn tells us that a debt means a liability of obligation in respect of a claim and for the meaning of claim , we have to go back to Section 3(6) which defines claim to mean a right to payment even if it is disputed. The Code gets triggered the moment default is of rupees one lakh or more (Section 4). The corporate insolvency resolution process may be triggered by the corporate de .....

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..... documents, records and evidence of default in part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that th .....

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