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2022 (6) TMI 501 - Insolvency & Bankruptcy
Maintainability 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 very much clear from the email dated 16.01.2018 and other emails exchanged between the parties that there existed a preexisting dispute between the parties. The Corporate Debtor had also claimed an amount form the Operational Creditor for bad quality of goods and also with regard to rate difference of the goods. It is also pertinent to note that the email dated 16.01.2018 of the Corporate Debtor is well before the issuance of the Demand Notice. The Corporate Debtor has also claimed certain amount from the Operational Creditor towards damages as mentioned in the email dated 16.01.2018. The defense of the Corporate Debtor is not spurious to escape the liability from payment but also requires investigation.
As per the settled law laid down by the Hon’ble Apex Court in Mobilox Innovations Private Limited V/s Kirusa Software Private Limited, [2017 (9) TMI 1270 - SUPREME COURT] the Adjudicating Authority is to see at this stage whether there is plausible contention which requires further investigation and that the dispute is not a patently feeble legal argument or an assertion of fact unsupported by evidence. It is thus important to separate the grain from the chaff and to reject a spurious defence which is mere bluster. However, in doing so the Court does not need to be satisfied that the defence is likely to succeed - So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the Adjudicating Authority has to reject the Application.
There is no merit in the Company Petition and the same deserves to be dismissed.