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2021 (1) TMI 1227 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - pre-existing-dispute or not - HELD THAT:- The existence of dispute is evident from the letter dated 31.01.2019 by the Operational Creditor to the Corporate Debtor. It is further pertinent to mention that the existence of dispute is evident from the letter dated 29.03.2019 issued by Operational Creditor whereby, the Operational Creditor had referred the dispute to the Ld. Arbitrator for outstanding payment of ₹ 6,49,94,661/- and proposed the name of Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) in pursuant to Arbitration & Conciliation Act. In pursuance of letter dated 29.03.2019 issued by the Operational Creditor, the Corporate Debtor by its letter dated 04.04.2019 had again informed about deteriorated quality of Crude Palm Oil of Edible Grade and asked the Operational Creditor to pay an amount of ₹ 50 crores towards losses incurred by the Corporate Debtor - The Sole Arbitrator, Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) after consideration of the disputes raised by both the parties, had passed an Arbitral Award dated 24.09.2019 whereby the Ld. Sole Arbitrator dismissed the Claim being premature and also dismissed the Counter Claim of the Corporate Debtor by recording that the same would be considered only after the Claimant (Operational Creditor herein) has failed to take all possible legal remedies to recover the Claim of the Respondent with the supplier. It is clear that the dispute must exist before the receipt of demand notice. Be that as it may, on appraisal of the arguments advanced by the Ld. Counsels, it emerges that there were disputes existing prior to the issuance of the Demand Notice - since there is a pre-existing dispute between the parties, we have no option but to reject the prayer of the Operational Creditor to initiate proceedings under Section 9 of IBC, 2016. Application dismissed.
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