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2019 (5) TMI 329 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - default in repayment of amount as against the loans availed by the Corporate Debtor - Section 7 of the Insolvency Bankruptcy Code - HELD THAT - In view of the reasons aforementioned and the material furnished by the Creditor Bank, the Tribunal observes that there is a debt due and payable by the Corporate Debtor and that a default has occurred which the Corporate Debtor was responsible to pay. Therefore, we are of the opinion that the Applicant Bank has established that the amount in default committed by the Corporate Debtor is a fact and it is supported by the documentary evidence placed before this Adjudicating Authority. It is a fit case for admission - moratorium declared.
Issues:
1. Default in repayment by the Corporate Debtor leading to the initiation of Corporate Insolvency Resolution Process under Section 7 of the Insolvency & Bankruptcy Code. 2. Creditor Bank's claim of default and debt against the Corporate Debtor. 3. Service of notice and appearance of the Corporate Debtor before the Adjudicating Authority. 4. Establishment of debt default by the Corporate Debtor through documentary evidence. 5. Declaration of moratorium and appointment of Interim Resolution Professional. Analysis: 1. The Tribunal, in response to a Company Petition under Section 7 of the Insolvency & Bankruptcy Code, noted that the Creditor Bank filed for the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor due to default in repaying an amount of ?147,89,38,608.49 as on a specific date, based on loans availed by the Corporate Debtor. 2. The Creditor Bank provided credit facilities to the Corporate Debtor totaling ?134,00,05,892 under Term Loan-I and Term Loan-II. The Bank supported its claim with dates and events showing the existence of debt and default by the Corporate Debtor, including the execution of security documents and agreements. 3. Despite notices sent to the Corporate Debtor's registered office and private notices for appearance, the Corporate Debtor failed to respond or appear before the Adjudicating Authority. The Tribunal deemed the service of notice sufficient, providing multiple opportunities for the Corporate Debtor to participate in the proceedings. 4. After reviewing the dates, events, and annexures presented by the Creditor Bank, the Tribunal concluded that the Bank adequately demonstrated the credit facilities provided and the subsequent default by the Corporate Debtor in repaying the same, supported by documentary evidence. 5. Considering the evidence and the Corporate Debtor's failure to pay its debts, the Tribunal declared a moratorium, prohibiting certain actions against the Corporate Debtor, appointing an Interim Resolution Professional to oversee the Corporate Insolvency Resolution Process, and approving the admission of the application filed by the Financial Creditor. This detailed analysis of the judgment provides a comprehensive understanding of the legal proceedings, the grounds for initiating the Corporate Insolvency Resolution Process, and the Tribunal's decision regarding the default and debt repayment by the Corporate Debtor.
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