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2018 (6) TMI 972 - AT - Insolvency and BankruptcyCorporate insolvency process - existence of a pre-existing dispute inter-se the parties warranting rejection of application under Section 9 of the I&B Code - Respondent rights to file application - Held that:- Appellant does not appear to have either repayed the Operational Debt claimed by the Respondent or brought to his notice the existence of a dispute. In the given circumstances Respondent was within his rights to file application before the Adjudicating Authority for initiating Corporate Insolvency Resolution Process. As regards Appellant’s contention that the Respondent did not disclose the factum of buses being provided as security, be it seen that the transfer of buses was effected prior to the demand notice issued by the Respondent to the Appellant as has been claimed by the Respondent. It cannot be said that this fact had been willfully suppressed and non-disclosure thereof justified rejection of the application. Appellant has failed to demonstrate that he had within the period of 10 days of the receipt of the demand notice brought to the notice of the Respondent/ Operational Creditor existence of dispute or repaid the outstanding operational debt. Admittedly the buses given as security merely stood hypothecated with the Respondent. Such securities can, by no stretch of imagination, be counted towards payment of outstanding debt. If the Respondent has manipulated transfer of the vehicles on the basis of endorsements made in regard to hypothecation of these buses, it is for the Appellant to seek appropriate legal remedy. However, triggering of Corporate Insolvency Resolution Professional cannot be declined once there is default of a debt. The impugned order admitting respondent’s application under Section 9 of I&B Code does not suffer from any legal infirmity. The appeal being devoid of merit is accordingly dismissed.
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