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2020 (2) TMI 760 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate debtor failed to make repayment of its debt - debt due and payable or not - HELD THAT:- There is no privity of contract between the applicant and the Corporate Debtor. The Corporate Debtor has given this project to M/s. RITES Ltd. Hence, there is no liability directly from the Corporate Debtor to the Operational Creditor. Hence, on this ground the application ought to be dismissed - However, in the rejoinder filed by the Operational Creditor, they have not answered the question as to how the Corporate Debtor is liable to pay money to the Operational Creditor, when the contract was between the Corporate Debtor and M/s. RITES Ltd. Further, the Operational Creditor are only sub-contractor under the said M/s. RITES Ltd. Reliance placed in the case of Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. [ 2017 (9) TMI 1270 - SUPREME COURT ] where it was held that So long as a dispute truly exists in fact or is not spurious, hypothetical or illusory, the Adjudicating Authority has to reject the application. Application dismissed.
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