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2022 (9) TMI 323 - 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:- Mere denial of payment by the Corporate Debtor without communicating the existence of dispute as to quality of goods supplied cannot be considered as "Dispute" within the meaning of Section 5(6) of the Code. If bare denial of claim is labelled as dispute then Sections 8 & 9 of the Code would become redundant, which was not the intent of the legislature.
With respect to the pre-existing dispute, the Corporate Debtor had sent an email which has been addressed to Mr. Kailash Garg on 11 February 2015 about the quality of products and that the claim was settled in half, and on 28.02.2015 wherein a calculation chart has been given for the deductions made for transportation and weight shortages. Thereafter, the Corporate Debtor has made payments to the Operational Creditor through RTGS and cheques as is evident from the emails correspondences that have been filed by the Operational Creditor - there were pre-existing disputes with regard to the quality and weight of Soya DOC provided. The Corporate Debtor has filed another series of emails from 05.092016 to 26.09.2016 wherein the Operational Creditor has requested the Corporate Debtor to pay the outstanding amount and the Corporate Debtor has time and again reiterated that all the dues have been paid, in these emails the Operational Creditor has not mentioned the amount due or given a statement but has rather asked the Corporate Debtor to look into its accounts.
There is existence of pre-existing dispute hence, the Company Petition is liable to be rejected - Petition dismissed.