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2021 (6) TMI 91 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - HELD THAT:- It is clear that the both parties were having business dealings for considerable time and payment were made. Goods were also supplied and some payment were also received by the Applicant. Subsequently, there appears to be some dispute between both the parties - IBC is a very rigorous enactment. Hence, the Adjudicating Authority ought to ensure extreme caution and detailed study before passing a final order of admission. Based on the agreement, documents and submissions made by the parties, it is clear that the Applicant could not prove that the goods were supplied by lorry to the Corporate Debtor address. The lorry details of the consignment, delivery challan in proof of the same are not enclosed. Based on few emails exchanged between the parties and dishonored cheques, it is not appropriate to conclude the debt and default. The Applicant failed to satisfy this Adjudicating Authority that as per the invoices the goods were delivered by a lorry consignment to the address of the Corporate Debtor. Hence, neither the debt nor the default is proved. Since there were business dealings between the parties, it is not possible to pick and choose the invoice and establish that there is "alleged debt" and consequential default. The transaction involves purchase order, modes of operation as agreed between the parties, the terms and conditions and violations if any, the details of C & F agencies. Hence, from alleged debt out of few invoices, one cannot establish the case beyond doubt. The Applicant failed to establish the "debt" and "default". Since IBC is a rigorous act, it ought to be exercised with abundant caution. There ought to be no doubt of "alleged debt". Since there are lot of ambiguity regarding supply and payment, the application is dismissed.
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