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2022 (5) TMI 1312 - AT - Insolvency and BankruptcyInitiation of CIRP - existence of debt and dispute or not - whether the Demand Notice was either ‘delivered’ or ‘rejected’? - NCLT admitted the application - HELD THAT:- It is an admitted fact that the Operational Creditor and the Corporate Debtor entered into a Fuel Supply Agreement (FSA) on 14.10.2015 whereunder the Corporate Debtor had agreed to purchase Biomass Fuel form the Operational Creditor on the terms and conditions stated in the said Agreement. It is seen from the FSA that five types of fuel Cotton Stalk, Cane Trash, Corn Cob, Soya Hush and Juliflora were agreed to be supplied individually or in a combination thereof. A perusal of the invoices raised by the Operational Creditor from 01.06.2016 to 26.04.2016 show that the total amount was Rs.1,79,13,261/- for Biomass Fuel, Cane Trash and Cotton Chip. The material on record establishes that this amount has been acknowledged by the Corporate Debtor in their ledger and in the confirmation letter dated 01.04.2016 and 01.05.2016. The amounts were repeatedly requested to be paid by the Operational Creditor vide emails dated 09.04.2016, 19.04.2016 and 17.08.2016 - Article 6.1 of the Fuel Supply Agreement that Fuel would be supplied by the Operational Creditor, the rate whereof, would be agreed by and between the parties as per mutual discussions in the yearly collection and supply plan. To state that the Application was non-compliant of Section 8 of the Code and deserves to be dismissed, is unsustainable. Having regard to the admission of the liability in the correspondences and in the ledger confirmation letters read with the invoices raised over a period of time from 2016 onwards for supply of both Cane Trash and Cotton Stalk, this Tribunal is of the earnest view that the ‘dispute’ raised by the Appellant at this belated stage, having accepted the fuel over a duration of time, is a patently feeble argument, unsupported by any substantial evidence. Appeal is devoid of any merit and is dismissed.
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