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2020 (1) TMI 1264 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - Insurance claim pending - existence of debt and dispute or not - HELD THAT:- In case of dispute, this is not the forum to examine and adjudicate as to what extent the claim of the Petitioner is admissible as due and recoverable. Neither the Tribunal in the present proceedings will examine the merits of the respective claims. Moreover, even the adequacy of the dispute has not been seen. It is only to be seen whether the dispute raised by the Corporate Debtor qualified as dispute as defined under sub-Section 6 of Section-5 of the IB Code. The contention raised by the Corporate Debtor was neither spurious nor hypothecated nor illusory and infact there is a dispute with respect to delivery of goods in good condition at the destination place. The existence of non-disputed debt is sine-qua-non nor for initiation of CIRP under Section 9 of the IB Code, the IB Code is intended to be a substitute to a recovery forum - In the present case, the dispute was raised before the issuance of notice under Section 8 besides the correspondence placed on record shows that the liability has been disputed and there is a plausible dispute pre-exist between the parties. The claim of the operational debt in question is not free from dispute. Records show that the dispute was raised prior to issuance of notice under Section 8 of the IB Code - this Adjudicating Authority is of the view that the petition does not qualify for admission under Section 9 of the IB Code and therefore, the same is rejected. Petition dismissed without cost.
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