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TMI Blog2019 (9) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 is payable to the Corporate Debtor and the default has been committed. Appeal dismissed. - Company Appeal (AT) (Insolvency) No. 640 of 2019 - - - Dated:- 1-7-2019 - Mr S. J. Mukhopadhaya, Chairperson, Mr. A. I. S. Cheema, Member (Judicial) And Mr Kanthi Narahari, Member (Technical For The Appellant : Mr. Vaibhav Tyagi, Advocate For The Respondents : Mr. Sumesh Dhawan, Ms. Vatsala Kak and Ms. Geetika Sharma, Advocates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 debtor itself or a financial creditor or operational creditor. A distinction is made by the Code between debts owed to financial creditors and operational creditors. A financial creditor has been defined under Section 5(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 con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the debt , which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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