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2019 (7) TMI 1569 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate debtor failed to make repayment of its debt - existence of debt and pre-existing dispute or not - HELD THAT:- There were disputes existing prior to the issuance of the Demand Notice. We find the mails on record corroborate the Corporate Debtor's defence that a dispute in respect of the payment claimed existed even prior to the issuance of the demand notice. A pre- existing dispute does not entitle the Operational Creditor to seek Insolvency Resolution of the Corporate Debtor. Whether the Corporate Debtor is entitled to seek recovery or is justified in withholding the amount/ retention money is not for the consideration of this Bench. The disputes in-existence pertain to an outstanding liability for which a provision for resorting to arbitration exists. The defence raised by the Corporate Debtor needs adjudication which may or may not culminate in their favour, but suffice it to say that a plausible defence has been raised by way of a dispute, raised prior to the issuance the demand notice under section 8 of the Code, which prima facie does not appear to be mere moonshine. This Bench is of the view that the prayer for initiating Corporate Insolvency Resolution process of the Corporate Debtor is not sustainable - Petition rejected.
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