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2019 (8) TMI 329 - AT - Insolvency and BankruptcyMaintainability of petition - Initiation of Corporate Insolvency Resolution Process - Corporate Debtor - Section 8 of Insolvency & Bankruptcy Code, 2016 - existence of dispute as on the date of issue of Demand Notice - pre-existing dispute or not - HELD THAT:- The Hon’ble Supreme Court in “Mobilox Innovations Pvt. Ltd. Vs. Kirusa Software (P) Limited [2017 (9) TMI 1270 - SUPREME COURT] it is held that the ‘existence of dispute’ and/or the suit or arbitration proceeding must be pre-existing i.e. it must exist before the receipt of the Demand Notice or Invoice as the case may be. In the present case, the existence of dispute apparently establishes that the goods supplied by the Appellants have been rejected as per Quality Control Report. In the impugned judgement, the Adjudicating Authority gave his finding to establish the existence of dispute with regard to LOC issued by the Respondent to the extent of ₹ 39,15,148/-. The IBC, 2016 is not a recovery proceeding - the Adjudicating Authority rightly rejected the petitions with aforesaid reasons - petition dismissed.
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