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2019 (10) TMI 1246 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment - existence of default or not - section 9 of the Insolvency & Bankruptcy Code, 2016 - HELD THAT:- No doubt IBC is a summary proceeding and in such proceedings the Tribunal is not supposed to act as an Trial Court. It is also not expected that what would be the fate of suit/disputed. Ultimately and at the stage of admission what is to be looked upon is that there is a pre existing dispute as regard to the claims made by an Operational Creditor or not. The dispute has been defined in section 5(6) of the IBC, 2016. In the present case, none of the conditions mentioned in the said section exist in the suit filed by the Corporate Debtor in a sense that the suit is in the realm of allegation and that too with reference to misconduct mainly of its employee. It is also settled by judicial decision that dispute must not be frivolous and should not have been created to avoid payment of legitimate debts - This fact by itself is sufficient to make the contention of corporate debtor devoid of merits. If such kind of mechanism adopted by the corporate debtor is allowed in the IBC proceedings then none of the Operational Creditors would ever be able to initiate CIRP and thus, the very object of the IB Code would be defeated. That application filed under section 7 of IBC is complete in all respects and complies with the requirements of IB Code read with relevant regulations and the debt is not barred by limitation - Application admitted - moratorium declared.
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