2020 (10) TMI 169 - NATIONAL COMPANY LAW TRIBUNAL , NEW DELHI BENCH - Insolvency & Bankruptcy

Head Note / Extract:
Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- The reply dated 19.01.2018 sent by the corporate debtor, brings on record a dispute raised and existed between the parties prior to the issuance of the section 8 demand notice. There is thus force in the contention of the corporate debtor and it can be concluded that a dispute does truly exist between the parties in terms of section 5(6)(b) in the present case, which may or may not ultimately succeed but requires trial/investigation. Though this is not the forum to examine and adjudicate as to which portion of the claims or counter claims are admissible. Tribunal will not examine the merits of the dispute other than to see if there is in fact exist a 'real dispute' having some substance. There is 'Pre-existence dispute' which was raised by the corporate debtor prior to the notice served under section 8 of I & B Code. It is a fit case to reject the application under section 9 of the I & B Code - Application dismissed.