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2017 (9) TMI 435 - Tri - Insolvency and BankruptcyProceedings under Insolvency & Bankruptcy Code, 2016 - Held that:- Section 5(6) of the Insolvency & Bankruptcy Code, “dispute” includes a suit or arbitration proceeding relating to -(a) the existence of the amount of debt; (b) the quality of goods or service; (c) the breach of a representation or warranty. The fact that the quality of service required to be performed by the applicant under the work order is in dispute is evidenced by the termination of the contract by the respondent. This has consequently given rise to a dispute, inter alia, with regard to withholding of the running account bills, retention monies and with regard to bank guarantee. Section 8(2)(a) of the I.B. Code is ultimately concerned with the existence of a dispute with regard to alleged operational debt, which dispute has been raised by the applicant itself in its said notice under section 21 and in its application filed under sections 9 and 11 of the Arbitration & Conciliation Act, 1996. Therefore, the applicant clearly could not have filed and consequently cannot maintain the said applications. On the above basis, it is clear that the application filed by the Operational Creditor for initiation of Corporate Insolvency process deserves to be dismissed as non-maintainable.
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