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2020 (1) TMI 1278 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Corporate Debtor availed recruitment services of the Petitioner for the post of Director in Corporate Debtor's organization, the Corporate Debtor failed and neglected to pay the amount of debt due under the invoice - existence of debt and dispute or not - HELD THAT:- The candidate selected by the Petitioner was not in a position to cope up with the job requirements of the Corporate Debtor and left the organization, for which the Corporate Debtor sought a suitable replacement. This clearly shows that the candidate selected by the Petitioner is not up to the mark as it is amply proved that the person had resigned for the reason that he was not in a position to cope up with the job. It is to be seen that the Petitioner is charging a fee of ₹ 20,06,000/- and the selected candidate worked for less than three months - Since the selected candidate who joined on 15.03.2019, resigned on 03.06.2019, which is within 3 months of his appointment, the Petitioner is bound to find a suitable candidate for the position of Director, failing which the petitioner is bound to refund the fees paid. In terms of the agreement the petitioner has to refund the fees, in case if no suitable candidate is replaced by the Petitioner. It is not the case of the petitioner that despite providing the replacement for the resigned candidate, the corporate debtor failed to make the payment. Since no replacement has been provided by the petitioner, as per the agreement, the corporate debtor is not liable to make the payment as claimed by the petitioner, as there is no debt. Hence dispute raised by the corporate debtor squarely falls under section 5(6)(a) of the code - thus, there is a clear dispute relating to the existence of debt as provided u/s 5(6)(a) of the Code. Petition dismissed.
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