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2017 (11) TMI 892 - Tri - Insolvency and BankruptcyCorporate insolvency resolution process - Whether the advocate who issued the demand notice in Form-3 has got any authority to issue the notice? - Whether the dispute raised by the respondent/corporate debtor comes under the definition of section 5(6) of I&B Code, 2016? - Held that:- A demand notice issued in the instant case was not issued in terms of the provisions of the Adjudicating Authority Rules and I&B Code. We hereby hold that the demand notice issued by the applicant advocate was not issued Under S. 8(l) of I&B Code, and therefore the contention on the side of the respondent that Annexure A notice is not a notice issued under S. 8(1) of I&B code is sustainable. This point is answered accordingly. Here in this case respondent has no case that the dispute he already raised with the applicant is pending for any consideration before any adjudicating authority or in any Court. However, it has come out in evidence that respondent disputed quality of the goods received upon receipt of the goods and communicated the complaint in writing to the applicant in appropriate time. No explanation forth coming from the applicant regarding the disputes highlighted in the notices issued by the respondent to the applicant. More over the copy of reply notice evidently received by the applicant not at all produced along with the application. The documents produced on the side of the respondent not at all challenged on the side of the applicant. Therefore, the respondent succeeded in proving that a dispute regarding quality of the goods and the money liable to be paid by the respondent was pending for consideration with the applicant even before the statutory notice issued by the applicant and that it is a genuine dispute which according to us comes under the purview of section 5(6) of I&B code. Respondent has succeeded in proving existence of a genuine dispute prior to issuance of demand notice and, therefore, this application is liable to be rejected.
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