Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (10) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 1348 - 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:- It is settled position of law that Corporate Insolvency Process can be initiated only justified reasons, in the light of object of Code and it cannot be initiated in a casual way proceedings under the Code and it would have serious civil Consequences on Corporate Debtor, more so when Corporate Debtor is solvent Company having so many employees depending on it for their livelihood. It is settled position of law that the provisions of Code cannot be invoked for recovery of outstanding alleged amount. The Hon'ble Supreme Court in the case of Mobilox Innovations Private Limited Vs. Kirusa Software Private Limited, [2017 (9) TMI 1270 - SUPREME COURT] has inter alia, held that IBC, 2016 is not intended to be substitute to a recovery forum. The petitioner failed to establish case so as to initiate CIRP as prayed for and thus it is liable to be dismissed. Petition dismissed.
|