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2020 (3) TMI 1211 - AT - 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 existence of dispute prior to the issuance of demand notice dated December 3, 2018 with regard to dues payable to the first respondent. The appellant/corporate debtor had availed the services of respondent No. 1-operational creditor and in pursuance of the same, the appellant issued cheques to the first respondent and in one of the letters of the appellant (annexed at page 90 of the paper book), it is clearly mentioned that they have issued cheques for ₹ 3 lakhs to be deposited on March 31, 2018. The dispute must be bona fide dispute as held by the hon'ble apex court and this Tribunal in various judgments. The payment of huge cash, which is impermissible, that too, to a third party and trying to adjust the payments due to the operational creditor, i. e., the first respondent herein cannot be recognized. The said dispute is not a bona fide dispute and therefore the Adjudicating Authority has rightly admitted the application. Apart from above, even if ₹ 25 lakhs is held to be paid was to be accepted, admittedly corporate debtor held back ₹ 1 lakh. If the default is ₹ 1 lakh, the insolvency can be triggered against the corporate debtor as per section 4 of the IBC. The appellant in grounds of appeal has stated that the balance of ₹ 1 lakh was withheld by the appellant. Thus the default is admitted. There are no reason to interfere with the order passed by the learned Adjudicating Authority - appeal dismissed.
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