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2020 (2) TMI 1076 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor defaulted in making repayment - existence of debt and default or not - whether debt, default in question is established without there being any dispute raised by the Respondent, in the light of pre-requisite conditions, as prescribed under section 9 of Code, under which the present Petition/Application is filed? Whether the basic document, on which entire cause of action arise is 'Firefly Agreement" dated 25th August, 2014(FF Agreement-RL-01 Linga-VFX & D Aging-Budget-Vo6) is an agreement enforceable under law or not? - HELD THAT:- There is no debt arise in the instant case basing on valid legal document. Moreover, whether the Adjudicating Authority being the Authority to examine the issue summarily, could not go into the details of the validity of the Agreement in question. Therefore, the validity of the Agreement can be examined by competent Civil Court, after adducing relevant evidence. Since the terms of Agreement are acted upon by the Parties and thus validity of it is no more re sintegra is not tenable. Whether the alleged debt in question is dispute or not? - HELD THAT:- The Code sections 3(6) 8B(11) of the Code, defined 'Claim and Debt. "Debt" means a liability or obligation in respect of a claim, which is due from any person and includes a financial debt and operational debt; and "claim" means- (a) a right to payment, whether or not such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable, secured or unsecured; (b) right to remedy for breach of contract under any law for the time being in force, if such breach gives rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured, unmatured, disputed, undisputed, secured or unsecured - the right to claim, in the instant case, arise on the Agreement in question, which was not properly executed in accordance with law. It is a settled position of law that the provisions of the Code can be invoked where fundamental issues like debt, default, are not in dispute as it is summary proceedings in nature. Relevant issues to be examined in a Petition filed U/s 9 of the Code is whether there are debt and default in question and whether any pre-existing dispute is there or not. The Petitioner has failed to make out any case so as to initiate CIRP against the Respondent as prayed for - Petition dismissed.
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