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2019 (2) TMI 1571 - NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCHCorporate Insolvency Resolution Process - existing dispute - HELD THAT:- Admittedly, the entire principal amount has been paid by the Corporate Debtor to the Operational Creditor during the pendency of the present petition. The Operational Creditor vehemently argued that the statutory interest provided for by the MSME Act on the delayed payments is still pending and the present petition should be admitted. The interest arising from the MSME Act has been disputed by the Corporate Debtor. The Corporate Debtor vehemently argued that the Operational Creditor has not produced any document to show that it is registered under the MSME Act. As argued, that the only document relied upon by the Operational Creditor is a Form/ Memorandum downloaded by it from the website of the Directorate under the MSME Act, which does not establish the registration. As argued that such a dispute can only be adjudicated by the dispute resolution mechanism provided under the MSME Act. In this case undisputedly the principal amount has been paid off during the pendency of the petition. Dispute that has been raised is relating to the interest amount which is being claimed on the basis of the MSME Act. The contention of the Operational Creditor is based on the fact that as per the statutory provision of the MSME Act, Petitioner is entitled for interest even without any prior agreement. The Corporate Debtor has raised the dispute regarding the registration of the Operational Creditor as a MSME unit. There is a plausible contention in the argument raised by the Corporate Debtor which requires further investigation and it appears that the dispute raised by the Corporate Debtor is not a patently feeble legal argument or an assertion of fact unsupported by evidence. Hon’le Supreme Court in Mobilox Innovations (P) Ltd. (2017 (9) TMI 1270 - SUPREME COURT OF INDIA), in case of an existing dispute, the application under Section 9, IBC is to be dismissed. The Adjudicating Authority does not have powers of a civil court to adjudicate upon the entitlement of the Operational Creditor to the benefits accruing from the MSME Act. The petition does not deserve to be admitted. In this scenario, the objections raised by the Corporate Debtor regarding the eligibility of Mr. Sanjay Kumar Ruia to initiate and maintain the present application and the question of appointment of the proposed Interim Resolution Professional, who has later on recused from the assignment have no significance. This Petition is dismissed.
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