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(D) The Respondent had repeatedly Acknowledged the `Debt' / subject `Letter of Credits', in their Statements dated 07.10.2016 and 09.11.2016.

(E) The Respondent had also admitted and Acknowledged, the `Debt' owed to the `Appellant', on account of the `Devolvement of Letter of Credits' in their (i) Balance Sheets

(ii) Financial Statements / (iii) Annual Returns; (a) Balance Sheet for the year 2015-2016 (b) Balance Sheet for the TA No. 38 of 2021 in Company Appeal (AT) (Ins.) No. 80 of 2021 year 2016-2017 (c) Annual Return for the year 2017-2018 (F) The Respondent had admitted the `Devolvement of Letter of Credits', in their Letter dated 03.11.2016, stating, as under:

``You are simply pressurising only for the payments of devolved LCs and you are pressurising for the payment of devolved LCs dated 20/10/16, 26/10/16, 3/11/16, which is impractical and further on 14.11.2016, stating that ``The non-payment of LCs from 20/10/16 to till date is only due to banks arbitrary decisions in increasing LC margins from 10% to 15%''

18. The submission of the Appellant / Bank is that the Respondent, is in `Default' of the `Debt', arising out of the `Devolvement of Letters of Credit', and the aforesaid document clearly exhibit the same. In this regard, the stand of the `Appellant / Bank' is that, the `Adjudicating Authority', does not have any jurisdiction, to enter into the merits of the matter i.e., the `Adjudicating Authority', is not to examine the each and every aspect of `Default'.

``Since it is very difficult for us, to recover payments from our customers due to the incomplete supply of their respective orders, we requested many times to open our LC's at 10% Margin, as per the terms of the sanction letter which is in force. But without TA No. 38 of 2021 in Company Appeal (AT) (Ins.) No. 80 of 2021 opening LC's on our suppliers, you are pressurising for the payment of devolved LC's Dated 20.10.16, 26.10.16 and 3/11/16, which is impractical. Please note that we are doing business from last 7 to 8 years with you, in this tenure, we have never delayed our Payment of LC's or Interest of C.C. even for an hour. The Devolvement of LC's arised a week after refusal to open our LC dated 13/10/2016, though our account was very much regular on the said date and there was a clear LC balance available in our account. We request you once again to refer our above said Letters which clearly communicated why we were not able to increase LC Margin from 10% to 15%, and how our business came to halt due to the Non-issual of LC's on our suppliers.''

122. The Respondent / Corporate Debtor had acknowledged the `Debt' / `subject Letters of Credits', in their Statements dated 07.10.2016 and 09.11.2016. The Balance Sheet for the years 2015-2016, 2016-2017, 2017-2018 of the Respondent / Corporate Debtor unerringly points out the `Admission' and the `Acknowledgement' of `Debt', to be paid to the `Appellant / Bank', on account of the `Devolvement of Letters of Credits'.

123. In reality, the Respondent / Corporate Debtor, in its Letter dated 03.11.2016, had `Admitted' the `Devolvement of Letters of Creditors', among other things mentioning that the `Non-Payment of LCs' from 20.10.2016 to till date, is only due to the Bank's arbitrary decisions in increasing `LC Margins from 10% to 15%'. Therefore, this `Tribunal' TA No. 38 of 2021 in Company Appeal (AT) (Ins.) No. 80 of 2021 unhesitatingly holds in an `unambiguous and categorical term', that the `Respondent / Corporate Debtor', is in `Default' of `Debt' arising on `Devolvement of Letters of Credit', as evidenced from the `Documents / Material Papers' of the `Appellant / Bank', which is an adverse circumstance, against the `Respondent / Corporate Debtor'.