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2017 (6) TMI 500 - Tri - Insolvency and BankruptcySection 9 of Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as Code) praying for initiating Corporate Insolvency Resolution process against the Respondent/Corporate Debtor - Held that:- As per the provisions of 5(6) of the Code “dispute” has defined to include a suit or arbitration proceedings relating to (a) The existence of the amount of debt; (b) The quality of goods or service; or (c) The breach of a representation or warranty. The terminology “Dispute” cannot be given a rigid interpretation or be limited to pendency of a suit or an arbitration proceeding. The justification of withholding the entire outstanding amount is not within the scope and jurisdiction of the Bench to appreciate, as the invoking the provision of this Code is not for a Recovery of Debt. Whether the Corporate Debtor is entitled to adjust liquidated damages without actually proving is also not for this Bench to consider. Suffice it to say that there is some material placed before us to reflect the dissatisfaction of the work awarded. A sum of ₹ 63,99,062/- has already been paid by the corporate debtors. The Corporate Debtor has claimed adjustment towards removal of the snags by third parties during the defect liability period, liquidated damages and payment of rent without being operational for want of the project being completed on time. The facts of the case do not call for Initiation of Insolvency Resolution Process to be set in motion against the corporate debtor.
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