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2019 (8) TMI 1601 - NATIONAL COMPANY LAW TRIBUNAL , BENGALURU BENCHMaintainability of application - initiation of CIRP - Corporate Debtor committed a default for total outstanding amount - Existence of debt and dispute or not - HELD THAT:- It is a settled position of law that the provisions of Code cannot be invoked for recovery of outstanding amount but it can be invoked to initiate CIRP for justified reasons as per the Code. The Hon'ble Supreme Court in the case of MOBILOX INNOVATIONS PRIVATE LIMITED VERSUS 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. We have perused the reply dated 24.11.2018 to the Demand Notice of the Petitioner, the legal notice dated 18.03.2016 issued by the Petitioner on the same grounds raised herein and a response to the same by the Respondent dated 27.04.2016. Further, we have also noted the contention of the Respondent that the non-payment of the alleged cash reward for ESOPs was on account of the Petitioner not discharging his responsibility and the fact that the Petitioner herein has lodged police complaints alleging the amount due from the Respondent. There exists a credible dispute with regards to the payment of the alleged Operational Debt - the present case is not a fit case to admit - Application admitted - moratorium declared.
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