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2023 (6) TMI 329 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , CHENNAI
Initiation of CIRP - Proof of debts - raising an Invoice, is a precondition, in all cases, for admission of a Section 9 Petition under the I & B Code, 2016 or not - strict proof of debt and default present or not - According to the Appellant / Petitioner / Operational Creditor, the Respondent / Corporate Debtor, is required to pay an advance Sum of Rs,2,28,62,374.63, but the Respondent / Corporate Debtor, is denying / disputing its Liability, to pay an Advance Sum.
HELD THAT:- The Proceedings under the I & B Code, 2016, are summary in character and a trial is not conducted, like that of Civil matter, before the Competent Civil Court.
It cannot be forgotten that an Application under Section 9 of the Code, requires a strict proof of Debt and Default. An existence of a Pre-existing Dispute, is a bar to the initiation of the Corporate Insolvency Resolution Process, at the instance of an Operational Creditor. If there is a Pre-existing Dispute, between the Parties, the main CP (IB) No.49 / BB /2021, under Section 9 of the Code, against the Respondent / Corporate Debtor (filed by the Appellant / Petitioner / Operational Creditor), per se is not maintainable.
On a careful consideration of the contentions advanced on either side and when the Appellant / Petitioner / Operational Creditor, in the instant case, has not proved, to the satisfaction of this Tribunal, as to the Aspect of Debt and Default, committed by the Respondent / Corporate Debtor (ofcourse, based on the facts and circumstances of the instant case, which float on the surface), the conclusion, arrived at by the Adjudicating Authority (NCLT, Bengaluru Bench), in dismissing CP (IB) No. 49 / BB / 2021 (preferred by the Appellant / Petitioner / Operational Creditor), is free from any legal infirmities. Consequently, the instant Appeal fails.