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2020 (9) TMI 797 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- It is settled position of law that the provisions of Code cannot be invoked for recovery of outstanding alleged amount(s), but it can be invoked to initiate CIRP for the justified reasons as per objective of the Code. The Hon'ble Supreme Court in the case of MOBILOX INNOVATIONS PRIVATE LIMITED VERSUS KIRUSA SOFTWARE PRIVATE LIMITED [2017 (9) TMI 1270 - SUPREME COURT] has inter alia, held that IBC, 2016 is not intended to be substitute to a recovery forum. The instant Company Petition is not a fit case to initiate CIRP and the Parties can prosecute the alternative remedy by way of Mediation, which is already filed on 31,12,2019, before the District Legal Services Authority, Bengaluru Rural District, and Notice issued under PIM No. 25/2019 dated 31.12.2019 and the next date of hearing is stated to be 18.06.2020 - the instant Company Petition is not maintainable, and there is pre-existing dispute over the issue raised in the instant Company Petition, there is no prima facie case made out, and it is filed with an intention to recover the alleged outstanding amount rather to initiate CIRP on justified reasons. Petition dismissed.
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