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2019 (1) TMI 1825 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - time limitation - pre existing dispute or not - Whether the petitioner made out a case to commence the Insolvency Resolution Process against the Respondent? Time Limitation - HELD THAT:- It is a well settled principle of law that the Law of Limitation is applicable to the proceedings before the Adjudicating Authority under IBC, 2016. It is also a fact on record that the petitioner has stated that the amount is due for the period from 14.06.2012 to 20.07.2013, therefore the corporate debtor contended that the limitation expired in the month of June 2016. However, it is to be noted that on the continuous perusal of the petitioner, the Corporate Debtor has issued a cheque for ₹ 2,00,000/- on 02.05.2017 which was bounced thereafter. Since, the Corporate Debtors has issued a cheque on 02.05.2017, the fresh period limitation starts from the said date and therefore the contention of the Corporate Debtor has to fail - the petition is not barred by limitation. Pre-existing dispute or not - HELD THAT:- It is on record that the petitioner has filed an application before MSEFC on 20.12.2017 and thereafter issued the demand notice on 15.02.2018. It is on record that the application was pending before MSEFC before issuing the demand notice and it could only be taken as pre-existing dispute - It is well settled principal of law that when there is pre-existing dispute, the adjudication authority has no other option except reject the application filed under section 9 of the Code. The dispute pending before MSEFC not spurious, hypothetical or illusory but it is an admitted fact on record. The Corporate Debtor substantiated that there is a pre-existing dispute. Whether the petitioner made out a case to commence the Insolvency Resolution Process against the Respondent? - HELD THAT:- The petitioner has not made out any case for invoking the jurisdiction of this Tribunal to commence corporate insolvency process against the Respondent and this issue is also answered in favour of the corporate debtor. Petition dismissed.
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