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2019 (5) TMI 670 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process (CIRP) - Default on the part of Corporate Debtor to make the payment - appointment of qualified Interim Resolution Professional - HELD THAT:- As per section 2 of the Code, the provisions of this Code shall apply to any Company incorporate under provisions of the Companies Act, 2013 (18 of 2013) or under any previous Company law; any Limited Liability Partnership incorporated under the Limited Liability Partnership Act, 2008 etc. in relation to their, liquidation, voluntary Liquidation or bankruptcy as the case maybe. The instant claim relates to the year 2012 and the Petitioner itself admits that last transaction with the Respondent was on 01.01.2013. Moreover, the Respondent has promptly denied the claim of the petitioner vide their reply dated 22.06.2017 by denying the liability. And the claim itself is basing on the purported letters issued on 08.10.2012, 30.03.2013, 30.09.2013 and 31.03.2014 which are denied by the Respondent. Therefore, the claim itself is barred by laches and limitation apart veracity of claim itself. Moreover, the MoU dated 14.01.2013 in question, itself contained several terms and conditions to claim any bills as detailed supra. Therefore, disputed issues cannot be gone into the proceedings in summary proceedings like instant proceedings initiated under the Code. The instant Company Petition is not only barred by laches and limitations and then there is a substantial dispute raised by the Respondent. It is a settled position of law that the provisions of Code cannot be invoked for recovery of outstanding amount but it can be invoked to initiate CIRP for justified reasons as per the Code - The Hon'ble Supreme Court in the case of Mobilox Innovations (P.) Ltd. [2017 (9) TMI 1270 - SUPREME COURT], has inter alia, held that IBC, 2016 is not intended to be substitute to a recovery forum. Thus the claim in question itself is disputed and the same is also barred by laches and limitations, and the Petition is filed with intention to recover the alleged outstanding amount and thus it is liable to be rejected - petition dismissed.
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