Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (7) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1555 - Tri - Insolvency and BankruptcyMaintainability of application - Initiation of CIRP - allegation that Corporate Debtor defaulted in making repayment - debt outstanding - existence of dispute or not - HELD THAT:- There is a pending litigation between the parties it can be seen that there is a pending dispute existing between the parties to the petition. The claim of dispute suggests the need of elaborate investigation. It is reiterated that existence of dispute in the present case cannot be ruled out - it appears that there is an existence of prior dispute though civil suit and police complaints have been filed after the receiving of the demand notice. It is also seen that both the Operational creditor and Corporate Debtor are closely linked not only in relation to these 2 companies but also several other entities as well. The director of the operational Creditor and the Corporate Debtor have served other 3 entities that have been formed between them and they qualify to be treated as "related Parties". The amount of claim raised by the applicant clearly falls within the ambit of disputed claim. Section 9 (5) (ii) (d) of the Code provides that adjudicating authority shall reject the application if notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility. Petition dismissed.
|