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2022 (3) TMI 817 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed ot make repayment of its dues - Financial Creditors - existence of debt and dispute or not - time limitation - HELD THAT - The Applicant filed present Application under section 7 of IBC, 2016 and served the copy of this application through speed post at its registered address as reflected on the MCA website, which is duly delivered to the Corporate Debtor. The affidavit of service is filed - The Corporate Debtor has neither filed any reply nor appeared before the bench and the corporate debtor was proceeded ex-parte on 21.02.2022. The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application - the default of the corporate debtor is subsisting continuing till date. Hence, the application was filed within the period and is not barred by limitation. The present application is complete and the Applicant is entitled to claim its dues, which remain uncontroverted by the Corporate Debtor, establishing the default in payment of the financial debt, beyond doubt - the present application is admitted, in terms of section 7(5) of IBC, 2016 - moratorium declared.
Issues:
1. Application under section 7 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency process against a Corporate Debtor. Analysis: The Applicant, a Financial Creditor, filed an application under section 7 of the Insolvency and Bankruptcy Code, 2016 seeking to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor. The Financial Creditor submitted that a Debenture Subscription Agreement was executed, and significant amounts were disbursed to the Corporate Debtor. The Corporate Debtor defaulted on various interest payments and failed to redeem outstanding debentures, leading to an event of default as per the agreement terms. The Financial Creditor invoked personal guarantees and initiated arbitration proceedings, resulting in an arbitral award against the guarantors. Enforcement proceedings were filed in the Delhi High Court, and a corporate guarantee was also invoked. The Corporate Debtor expressed financial constraints and failed to respond to demands for outstanding payments. The Tribunal noted that the Corporate Debtor did not contest the application, and proceedings were conducted ex-parte. It was established that the Corporate Debtor's default persisted, and the application was not time-barred. The Tribunal found the application complete and admitted it under section 7(5) of the IBC, 2016. An Insolvency Resolution Professional (IRP) was appointed, subject to certain conditions, to oversee the Corporate Insolvency Resolution Process. The Financial Creditor was directed to deposit a sum with the IRP to cover necessary expenses. The admission of the application triggered a moratorium period under Section 14(1) of the IBC, 2016, with specific provisions coming into effect during this period. The order was communicated to the relevant parties, including the Applicant, Corporate Debtor, and the appointed IRP. Copies were forwarded to regulatory bodies for record-keeping and compliance purposes. The Registrar of Companies was instructed to update the Master Data, and a compliance report was to be submitted to the Registrar, NCLT.
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