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2021 (6) TMI 739 - 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 - dispute of contractual nature or not - arbitration proceedings justified or not - HELD THAT:- In the present matter, it is an admitted fact that at the end of each invoice issued by the Operational Creditor there is an Arbitration Clause. Against these invoices Corporate Debtor had issued debit note. When the debit notes were issued, the corporate Debtor also received emails from Operational Creditor seeking clarification and contesting the issuance of Debit Note, hence, a dispute had come into existence by admitting the fact that valid invoice was existing between the parties. Subsequently, after the exchange of emails the parties have met multiple times to settle the dispute between them with respect to the invoice amount and supply involved. At this stage we are not going into the merits of existence of per-existing dispute as defined in I & B Code, 2016 but to test whether the dispute if any needs to be sent to arbitration as per section 8 of Arbitration and Conciliation Act (as amended). Since the disputes are purely contractual in nature, the invocation of arbitration is justified. Once the parties are sent to arbitration, nothing survives in the insolvency application as the issues between the parties after arbitration, will decide the rights of the parties. Hence at this stage, the insolvency application in view of the parties being sent to the arbitration, has become infructuous - Application allowed.
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