Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1113 - AT - Insolvency and BankruptcyInitiation of ‘Corporate Insolvency Resolution Process’ - Held that:- Given the frame of the suit and the nature of relief claimed therein coupled with the fact that no relief with regard to the subject matter of petition under Section 9 of I&B Code was claimed therein against the Respondent, we are of the considered view that the contention raised by the Respondent does not require further investigation and the dispute raised in reply to the demand notice is a mere bluster. The impugned order passed by the Adjudicating Authority on 26th July, 2018 cannot be supported. The impugned order suffers from grave legal infirmity. The Adjudicating Authority seriously erred in declining to recognize Appellant as an ‘Operational Creditor’ and in arriving at the conclusion that there was an existence of dispute prior to filing of the petition. Having regard to the findings recorded hereinabove the impugned order cannot be sustained and the same is set aside. The appeal is allowed. The matter is remitted back to the Adjudicating Authority to admit the petition filed by the Appellant under Section 9 of the I&B Code after giving limited notice to the Respondent – Corporate Debtor so as to enable it to settle the claim before its admission.
|