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2019 (9) TMI 1129 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor - existence of dispute or not - Section 9 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- It is a settled law that if any dispute is raised prior to the issuance of the invoices or Demand Notice u/s 8(1) of the I&B Code with regard to quality of service or goods or pendency of the suit or arbitration, in such case one may take the plea that there is an ‘existence of dispute’ but if any dispute is raised after issuance of Demand Notice u/s 8(1) that cannot be termed to be a ‘pre-existing dispute’. The Adjudicating Authority has failed to notice the aforesaid issue and observed that ‘debt’ in question is not only serious dispute but also barred by limitation and laches and not discussed under which provision the ‘Master Service Agreement’ with ‘Sri Gowtham Academy of General and Technical Education’ was consequentially issued on 8th February, 2016 and the reply to the Demand Notice was issued on 8th August, 2017. Case remitted to the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench for admitting the application u/s 9 of the ‘I&B Code’ after notice to the ‘Corporate Debtor’.
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