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Swiss Ribbons Pvt. Ltd. vs Union Of India on 25 January, 2019

24. Given the law laid down in Swiss Ribbon case (supra), it becomes clear that rather than the "inability to pay debts", it is the "determination of default" that is relevant for allowing or disallowing an Application filed under Section 7, 9 or 10 of IBC. The said shift enables the Financial Creditor to prove by solid documentary evidence, that there was an obligation to pay the debt and that the debtor has failed to fulfill its obligation. Therefore, to allow the application under Section 7, it is not relevant to see the inability of the Corporate Debtor to pay the debt.
Supreme Court of India Cites 118 - Cited by 349 - R F Nariman - Full Document
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