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TMI Blog2019 (9) TMI 1386X X X X Extracts X X X X X X X X Extracts X X X X ..... udicating Authority (National Company Law Tribunal), Single Bench, Chennai, whereby and whereunder, an application under Section 7 of the 'I&B Code' preferred by 'M/s. Stressed Assets Stabilization Fund' has been admitted. 2. Learned counsel appearing on behalf of the Appellant submitted that the claim is barred by limitation. 3. From the record, we find that the aggrieved person moved before the 'Debt Recovery Tribunal'. Admittedly, it is accepted by the Appellant that there is mortgage of property made by the 'Corporate Debtor'. Therefore, it is clear that for such mortgage, 12 years limitation has been prescribed under Article 62 of Part V of First Division of the Schedule of the Limitation Act, 1963. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (7) as a person to whom a financial debt is owed and a financial debt is defined in Section 5(8) to mean a debt which is disbursed against consideration for the time value of money. As opposed to this, an operational creditor means a person to whom an operational debt is owed and an operational debt under Section 5(21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor - it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied that a default has occurred, the application must be admitted unless it is Company Appeal (AT) (Insolvency) No. 954 of 2019 incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be." 6. From the aforesaid background, it is evident that even if a debt is disputed, if the amount is more than Rupees One Lakh, the application under Section 7 is maintainable. What is the exact amount of claim, that is only considered at the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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