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2019 (9) TMI 963 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor - Section 9 of Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - whether the Operational Creditor proved that the claim made by them is covered under the category of ‘Operational debt’ as defined under Section 5 (21) of the Code, 2016? HELD THAT:- Considering the arguments of the Corporate Debtor which primarily rests on the ground of a pre-existing dispute prior to the filing of the application and in the circumstances the application should be dismissed as not maintainable, it is necessary to ascertain the definition of ‘dispute’. In an application filed under Section 9 of the Code, Tribunal is not supposed to examine the merits of the dispute nor the adequacy of the dispute is to be seen. However, in matters under Section 9, the tribunal is only to see that a dispute pre-exists and that the dispute is not vague, got up or raised for the first time to evade the liability. The documents on record clearly show that the dispute was raised by the respondent prior to the demand notice issued under Section 8 (1) of the Code. Section 9 (5) 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 - this application fails and the same is hereby rejected and dismissed.
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