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2020 (1) TMI 1423 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor is a special purpose vehicle company incorporated for execution of project, that is, rehabilitation, strengthening and four laning of Srinagar to Banihal section in the State of J&K - Appellant claimed that part payment was due and the Appellant sent Notice under Section 8 of IBC on 21st January, 2019 referring to the invoices due and outstanding and sought to recover the dues for services rendered - HELD THAT:- The Adjudicating Authority erred in concluding that because Operational Creditor had moved the MSME Authorities, it showed pre-existing dispute. The Appellant had a relief open under the MSME Act and only because the Appellant moved the Authority under MSME Act, it does not mean that there is a pre-existing dispute. The dispute raised by the Appellant before the MSME was that it had dues to recover and that the Respondent has not paid. This by itself does not mean that there is pre-existing dispute as far as the Respondent is concerned. The context of the word “dispute” in Section 18 takes colour from Section 17 of MSME Act. It is different from context of Section 5(6) read with Section 8 of IBC - At present, nothing is shown that there was any pre-existing dispute raised by the Respondent with regard to the services rendered by the Appellant. When this is so, only because the Appellant went to the MSME Authorities was no ground for the Adjudicating Authority to reject the Application under Section 9. A further communication from the Authority has been placed on record by the Appellant at Page – 89. Although the subsequent letter shows that the conciliation proceedings had yet to start. The matter remitted to the Adjudicating Authority - Adjudicating Authority will admit the Section 9 Application and pass further necessary orders under the provisions of IBC.
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