TMI Blog2023 (5) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... o the appellant since the month of August, 2015 and said facility continued up to 31.03.2018. However, since the account of the appellant was irregular in the month of May 2019, the account was declared NPA and within the prescribed period of limitation the application under Section 7 of the Code was filed - The financial creditor in view of none clearance of the debt amount was constrained to file application under Section 7 of the Code in which notice was issued to the Corporate Debtor. However, despite valid service of notice, the appellant preferred not to participate in the proceeding before the NCLT. In such view of the matter the NCLT was left with no option but to pass order on the basis of materials available on record. Before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... khs sixty three thousand eight hundred and sixty seven only) had filed application for initiation of Corporate Insolvency Resolution Process (herein after referred to as CIRP ). 3. As evident from the record, it appears that total sum of amount of Rs. 17,45,00,000/- (Rupees Seventeen Crores forty five lakhs only) was disbursed to the corporate debtor. The appellant is the Suspended Director of the corporate debtor. Since the account remained irregular, on 01.05.2019 the said account was declared as Non-Performing Asset (NPA). Since debt was not cleared the financial creditor filed an application under Section 7 of the Code before the NCLT. From the order impugned, it is evident that despite valid service of notice on corporate debtor, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Memo of Appeal to persuade the court that the appellant had made communication to the Karnataka Bank/financial creditor with a prayer to allow him to regularize the loan account. According to the Ld. Counsel for the Appellant, out of the total financial debt about 28% amount was paid and as such it was submitted that notice may be issued to the Respondent so that steps may be taken for settling the dispute. 7. Ms. Meghna Rao, Ld. Counsel on instruction of the bank has appeared, however till date no vakalatnama has been filed. 8. Be that as it may, fact remains that the appellant despite service of notice preferred not to participate before the NCLT and as such the order impugned was passed ex-parte. It is also reflected from the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the month of May 2019, the account was declared NPA and within the prescribed period of limitation the application under Section 7 of the Code was filed. 9. The financial creditor in view of none clearance of the debt amount was constrained to file application under Section 7 of the Code in which notice was issued to the Corporate Debtor. However, despite valid service of notice, the appellant preferred not to participate in the proceeding before the NCLT. In such view of the matter the NCLT was left with no option but to pass order on the basis of materials available on record. 10. Before the NCLT, the debt was not disputed and the application was filed within the period of limitation and as such the Ld. NCLT has rightly passed the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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