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2020 (10) TMI 484 - 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:- Corporate Debtor has drawn the attention of this Tribunal to the Notices of Dispute dated 01.08.2018 and 17.09.2018 sent by the Corporate Debtor to the Section 8 Notices issued by the Operational Creditor wherein a reference has been made with regard to the return of the materials worth ₹ 17,12,649/- by the Corporate Debtor vide Tax Inv. No. RM-RTN-001 dated 06.02.2017, owing to the quality issue and expiry of shelf life and the same were duly received and acknowledged by the Operational Creditor. It is further submitted that vide notice of dispute dated 01.08.2018, the Corporate Debtor had categorically put the Operational Creditor on notice of several disputes such as the returned goods, Debit Notes not accounted for, payments not given credit to and among others. It is worthwhile to refer to the provisions of the I&B Code, 2016 more particularly to Section 9(5)(ii)(d) of the I&B Code, 2016 which provides that if notice of dispute has been received by the Operational Creditor or there is a record of dispute in Information Utility, this Authority is required to reject the Application and thereby communicating the dismissal to both the Operational Creditor as well the Corporate Debtor. There exists a 'dispute' between the parties before the issuance of the Demand Notice itself and the contentions raised by Corporate Debtor is a plausible contention which requires further investigation - since this Adjudicating Authority is having summary jurisdiction and while admitting or rejecting the Applications filed under Sections 7 and 9 of the I&B Code, 2016 if precise documents substantiating the claim not being filed in order to substantiate that the 'debt' has become due and payable by the Corporate Debtor, this Authority would certainly not be able to ascertain the 'default' on the part of the Corporate Debtor. Application dismissed.
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