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2019 (8) TMI 1471 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - Service of notice - HELD THAT:- The Operational Creditor is required to deliver the notice of demand along with invoices to the Corporate Debtor in prescribed form and manner as per the provisions of section 8 read with relevant regulations before filing a petition under section 9 of the I & B Code 2016. The requirement of service of notice of demand under section 8 has been provided to grant an opportunity to the Corporate Debtor to communicate its view point before proceeding under section 9 can be initiated and as per the scheme of I & B Code 2016, strict onus lies on the shoulders of Corporate Debtor to show the existence of dispute before delivery of notice u/s 8, otherwise the purpose of sections 8 and 9 proceeding would get defeated if frivolous contentions of Corporate Debtor are accepted and, simultaneously, Operational Creditor cannot use the mechanism of I & B Code 2016 as a recovery tool. This authority is not required to prove the veracity of the claim of either party and is only concerned with the aspect of existence of dispute prior to delivery of notice u/s 8 of the I & B Code 2016 for the purpose of deciding the fate Of application under section 9 of I & B Code 2016. Petition dismissed.
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