2023 (2) TMI 44 - AT - Insolvency & Bankruptcy

Initiation of CIRP - pre-existing dispute surrounding the operational debt or not - NCLT rejected the application - Section 9 petition filed before the Adjudicating Authority was a collusive petition or not - HELD THAT:- Given the framework of Section 9 of IBC, the remit of this Tribunal is summary in nature and it therefore does not behove this Tribunal to undertake either the comparative examination of the areas of specialisation of Caya and the Corporate Debtor company or to enquire into the veracity of the emails. All that is observed at this stage is that a dispute centering around breach of fiduciary duty by the Appellant in the context of Consultancy Agreement has been raised by the Respondents as their defence against the claim of the Appellant which is evidenced from the material placed on record.

It has been contended by the Respondents that the claims by the Appellant is disputed. Further they have denied that any amount is due and payable by the Corporate Debtor to the Appellant. In the light of the submissions and pleadings made by the Learned Counsel for Respondent No.2 and 3 and after seeing the material on record it is satisfying that the dispute raised on behalf of the Corporate Debtor company is not a moonshine dispute or a bluster.

The Adjudicating Authority has rightly dismissed the Section 9 application of the Appellant and that the impugned order does not warrant any interference - Appeal dismissed.