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2017 (10) TMI 1548 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - present application filed by Operational creditor on grounds of their recoverable debt - invocation of arbitration clause - HELD THAT:- This Bench is of the opinion that though the Operational Creditor has stated that there is no dispute with respect to the demand of the alleged outstanding balance, there exists a prior dispute primarily on account of dissatisfaction about proper implementation of the plant and the produce apart from non-execution of the tests under the GTR. It is however beyond the scope and jurisdiction of this Tribunal to appreciate the evidentiary value of the dispute. What is required to be assessed is that the dispute in the present proceedings is not patently false or a moonshine defence, raised only to resist initiation of any Insolvency Resolution Process against them. In the case at hand, various objections were taken prior to initiation of the procedure under the Code, some of which may have been redressed and some still not to the satisfaction of the Corporate Debtor. A company that sets up a plant involving a huge expense as in the present case does so with the hope of achieving a faultless product. The existing disputes with respect to the alleged deficiencies in respect of services rendered in the implementation of the project can only be adjudicated in another form, which we are informed is vide initiation of arbitration proceedings. This Bench is of the opinion that it is not to examine the merits of the dispute. Since the defence is not spurious or set up to resist the Resolution Process, and existed prior to the issuance of the notice to the Corporate Debtor, the petition is liable to be Rejected. Petition dismissed.
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