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2018 (9) TMI 1224 - AT - Insolvency and BankruptcyCorporate insolvency resolution process - Held that:- The reply letter dated 25th January, 2017 written by the ‘Corporate Debtor’ cannot be taken into consideration having issued in reply to demand notice dated 14th January, 2017 given by the appellant under Section 8(1) of the I&B Code. The dispute raised on imaginary facts and circumstances while replying to the demand notice cannot be treated to be an ‘existence of dispute’ for rejecting the application under Section 9. In absence of any evidence relating to preexistence dispute i.e. prior to issuance of notice dated 14th January, 2017 under Section 8(1) of the I&B Code we hold that there was no dispute in existence. Further, in view of letter of engagement and terms and condition of engagement as discussed above we hold that the appellant comes within the meaning of ‘Operational Creditor’ as defined under Section 5(7) r/w Section 5(8). There being a ‘debt’ due to the appellant and in absence of any evidence of payment, it is to be accepted that there was a ‘default’. In such background it was the duty of the Adjudicating Authority to admit the application.
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