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2020 (12) TMI 1316 - NATIONAL COMPANY LAW TRIBUNAL, AHMEDABADMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - validity of demand notice - HELD THAT:- The demand notice dated 21.08.2019 is issued by one Mr. Naveen Jain claiming to be Director of the applicant company. Demand notice, a pre-requisite under section 8 of the Insolvency & Bankruptcy Code, 2016 for filing the petition under section 9, is signed and issued by Mr. Naveen Jain without any authority. On perusal of the record it is found that no document is filed by the applicant authorising Mr. Naveen Jain to sign and issue such demand notice. On perusal of the records it is also found that one Mr. Jatinder Kumar, claiming to be Director of the petitioner company, has signed the application (form 5), but no document is filed whereby Mr. Jatinder Kumar has been given authority to file such application. Thus, due to want of proper authorisation, supported with Board Resolution, demand notice and subsequent filing of the instant application is bad in the eye of law and is not maintainable. The agreement dated 10.11.2017 entered between the petitioner and respondent stipulates that (Clause No. 32), which read as; “whether the termination of this Agreement by either party has been legitimate, the parties shall attempt to settle such dispute amicably between them in the event that such dispute has not been amicably settled within 90 days, then such a question or dispute shall be referred to and finally resolved by arbitration with the Arbitration Rule of Arbitration and Conciliation Act, 1996 and the precise location of the arbitration shall be Gurugram - the “Code” cannot be used as an arm twisting weapon. Further, the applicant has admitted that it had paid a sum of ₹ 1.00 crore towards security which is refundable. The petition is not maintainable and bad in the eyes of law - Petition dismissed.
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