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2019 (10) TMI 1242 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment - existence of any dispute over the debt or not - Section 9 of Insolvency and Bankruptcy Code, 2016, R/w Rule 6 of Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016 - HELD THAT:- The Corporate Debtor did not raise any dispute with regard to the matter filed before MSMEFC. Counsel contended that the Operational Creditor uploaded the Application under Section 18(1) of MSME Act 2006 on 02.02.2018 and no notice was served on the Corporate Debtor and it was withdrawn. Therefore, it doesn't amount to pending proceedings. It is true the Operational Creditor informed the Tribunal by filing a memo about withdrawal of application filed under Section 18 (I) of MSME Act and no proceedings were continued under the said Act. It cannot be said that there was a dispute pending. The Application filed by the Operational Creditor before MSMEFC was assigned temporary number and no notice was ordered by MSMEFC to the Corporate Debtor and 25. before taking further proceedings, the Application was withdrawn. For the said reason, the Corporate Debtor did not take this objection either in the reply or the counter because no notice was served by the MSMEFC on the Corporate Debtor. So, proceedings never stared against the Corporate Debtor before the MSMEFC. Corporate Debtor cannot take any advantage to contend dispute pending on the ground that application was filed before the MSMEFC under Section 18(1) of the MSME Act. So this objection cannot be a ground for rejecting the Petition. The objection cannot be sustained under the law. Therefore, the Operational Creditor is able to establish that Corporate Debtor committed default of operational debt and Petition is liable to be admitted. Application admitted - moratorium declared.
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