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2019 (11) TMI 1540 - 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 found that the Operational Creditor has moved the application before this Bench consequent upon the alleged failure on the side of the Corporate Debtor to abide by the terms of compromise memo indicating the number of cheques vis-a-vis the amount payable by honouring the cheques. The Operational Creditor has admitted that some of the cheques were cleared. It leads us to the prima-facie conclusion that the Corporate Debtor has demonstrated their bona fide in releasing the payment towards the admitted portion of the debt. As per the submission of the Corporate Debtor regarding the cheques returned un-cleared, they had issued stop memo in respect of these cheques allegedly owing to the failure of the Operational Creditor to rectify the snag work. It is evident from the components of the Snag work that these are integral part of fire fighting work envisaged to be completed in the Hotel Project of the Corporate Debtor without which a Five Star Hotel cannot start functioning. Being an experienced contractor in fire fighting work segment in similar projects, the Operational Creditor should have taken keen interest in resolving the snag works as above and obtained a Joint Compliance Report duly signed by both the parties in order to prove their bona fide - As per the conditions for EPC contract if there are claims from either party they have to follow the procedure of trying to reach the agreement and if it is not acceptable they must approach a Dispute Adjudication Board. Evidently, there is a dispute in the instant case in respect of which the parties can at their choice approach a Dispute Adjudication Board. Petition dismissed.
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