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2023 (3) TMI 544 - AT - Insolvency & Bankruptcy
Application filed u/s 9 of IBC dismissed - initiation of CIRP - Distributorship Agreement for realisation of its dues - Dismissal on the ground of pre-existing dispute - HELD THAT:- Reply to Section 8 notice has been annexed as Annexure A-10 to this Appeal where the Corporate Debtor has specifically denied the claim of the Appellant and has raised various claims in Para 9 to 14, totalling to Rs.3,45,59,139/-.
The reply to the Section 8 notice raises issues pertaining to pre-existing dispute between the parties. The submission of the Appellant that dispute is a moonshine dispute, is not satisfying. Admittedly, Distributorship Agreement between the parties is not disputed and the Appellant has claims against the Corporate Debtor. Appellant is free to take recourse to the mechanism as provided in the Distributorship Agreement for realisation of its dues. But present is not a case, where Section 9 proceedings under I&B Code can be initiated, when dispute is raised in reply to the Section 8 notice.
The Adjudicating Authority did not commit any error in dismissing Section 9 application - Appeal dismissed.