Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (9) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 1380 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- There is some mutual understanding between both the parties and in view of that the corporate debtor paid an amount of ₹ 25,00,000/- to the operational creditor as an advance with a condition to repay said amount as and when the operational creditor is successful to recover the same from M/S. Flovel Valves Private Limited who has defaulted in payment - the documents attached to the application itself shows that there exists pre- dispute regarding the claim amount. The e-mail communication from the respondent company, placed at page No. 10 to the reply clearly shows that there is/was pre-existing dispute. Since the very objective of the Code is re-organization and insolvency resolution of corporate persons, no objective will be served by subjecting a solvent company to insolvency resolution process. Further, recovery is an individual effort by a creditor to recover its dues through a process that has debtor and creditor on opposite sides. When creditors recover their dues - one after another or simultaneously from the available assets of the firm, nothing may be left in due course. Thus, while recovery bleeds the corporate debtor to death, resolution endeavors to keep the corporate debtor alive. In fact, the I & B code prohibits and discourages recovery in several ways. The Adjudicating Authority is of the considered view that the instant petition is not maintainable on the ground that prior to filing the application on 14th November, 2018, there is/are pre-existing dispute raised by the respondent in respect of container detention charges - Petition dismissed.
|