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2018 (8) TMI 1268 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - failure to pay dues against purchase of material - Held that:- A bare perusal of the e-mails clearly shows that there is a pending dispute regarding defects and delay caused in supply of goods between the parties since October, 2015, which is much before the issuance of demand notice by applicant. In the present case the respondent has raised evidence of an existing dispute along with sufficient particulars. The case records reveal that there was existence of dispute much prior to the issuance of notice under Section 8 of the Code. The claim of the dispute suggests the need for elaborate investigation. The moment there is existence of such a pre-existing dispute, the corporate debtor gets out of the clutches of the Code. In the facts of the case we are satisfied that a dispute truly exists much prior to the issuance of Section 8 notice. Not only there is a pre-existing dispute but also the respondent company in its reply to the Section 8 notice has clearly communicated to the applicant the fact of ‘existence of dispute’. Section 9(5)(ii)(d) of the Code provides that adjudicating authority shall reject the application if notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility. Present petition fails and the same is rejected.
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