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2019 (10) TMI 1344 - NATIONAL COMPANY LAW TRIBUNAL , KOCHI BENCHMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Debt - existence of debt and dispute or not - privity of contract - HELD THAT:- On careful perusal of the documents it is noticed that the foremost objection of the Corporate Debtor regarding 'Maintainability' of this application is found to be in order as there is no legal relationship exists between the parties, or any agreement executed in-between. Merely relying on Oral agreement and ordering CIRP will defeat the very purpose of the Code. Given the severity of the consequences that follow on initiation of insolvency proceedings against a company is to be appreciated and understood fully. It is also extremely important to safeguard against the exploitative use of the Code as a debt recovery mechanism and abuse of the process. In the absence of a written agreement supported by documentary evidence, we are not inclined to classify the amounts remitted by the operational creditors as "Operational Debt" under Section 5(21) and as such, the applicants does not fall under the definition of "Operational Creditors" under Section 5(20) of the Code. Thereby, the first two parameters are not satisfied - As regard to the existence of a dispute, the corporate debtor has outrightly rejected the claims as there is no 'privity of contract' between the parties. We tend to agree with the stand of the Corporate Debtor, in the absence of any of agreement between the parties in the instant case. Application dismissed.
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