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2020 (8) TMI 548 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of debt - Existence of dispute - Adjudicating Authority has dismissed the Application under Section 9 observing that there was a preexisting dispute between the Parties prior to the issuance of Demand Notice - HELD THAT:- As subject matter of the case relates to ‘Existence of a Dispute’, we are of the view that the case has to be decided on the touchstone of what the Hon’ble Supreme Court has observed in Mobilox Innovations Private Limited vs. KIRUSA Software Pvt. Ltd. [2017 (9) TMI 1270 - SUPREME COURT], where it was held that Going by the test of “existence of a dispute”, it is clear that without going into the merits of the dispute, the appellant has raised a plausible contention requiring further investigation which is not a patently feeble legal argument or an assertion of facts unsupported by evidence. The afore-noted e-mail communication dated 29.11.2018, 15.12.2018 and 17.12.2018 read together with the Minutes of the Meeting held on 16.11.2018, which is prior to the issuance of the Demand Notice dated 29.03.2019, establishes that there is plausible contention which requires further investigation and that the ‘Dispute’ is not patently feeble, legal argument or an assertion of fact unsupported by evidence. We hold that the dispute truly exists in fact and is not spurious, hypothetical or illusory. The IBC proceedings are ‘summary’ in nature and this is not a substitute for debt enforcement Procedure. There are no illegality or infirmity in the order of the Ld. Adjudicating Authority - appeal dismissed.
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