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2020 (9) TMI 438 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - HELD THAT:- It is not in dispute that the corporate debtor received a sum of ₹ 6,11,10,000/- on 04.10.2018. The case of the operational creditor that this amount was given for supply of 6300 gift cards at ₹ 10,000/- per card. Whereas the case of the corporate debtor is that there was a balance to the tune of ₹ 31 crores to be paid by the operational creditor and that this money was given by the operational creditor towards part-payment for the outstanding balance and the same was also informed to the operational creditor by the corporate debtor through e-mail dated 07.10.2018. It is the case of the operational creditor that no amount was due to the corporate debtor. On the other hand the corporate debtor was contending that an amount of ₹ 31 crores was due from the operational creditor. When there was a prior dispute between the parties, a petition under section 9 of the I&B Code cannot be admitted. Business transactions worth several hundreds of crores of rupees took place between the operational creditor and the corporate debtor. Therefore, the dispute raised by the corporate debtor cannot be said to be spurious, hypothetical or illusory. The next contention of the corporate debtor, in the alternative, is that the amount given as advance does not fall under the definition of operational debt. The case of the operational creditor is that money was given as an advance for supply of gift cards. It is true that advance, if any, given, does not come under the definition of operational debt. The case of the corporate debtor is that money was given for supply of gift cards after uploading the cards at ₹ 10,000/-per card. The money is given for uploading gift cards. Therefore, it cannot be said in the strict sense that it was an advance. We are unable to understand that money to be treated as advance of money. Money is intended for uploading cards and only after uploading cards delivery is to be effected. So in the strict sense, money given is not an advance in the nature of transaction carried between the operational creditor and the corporate debtor. However, there was prior dispute and as such the petition cannot be admitted. Petition dismissed.
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