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2020 (2) TMI 635 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - corporate debtor failed to make repayment of its debt - existence of debt and dispute or not - HELD THAT:- It is well established that there is pre-existing dispute. There is no defined agreement entered into between the parties. That apart, the Corporate Debtor is a going concern and there are more than 80 employees engaged with the Corporate Debtor whose livelihood is dependent upon the Corporate Debtor - In view of such serious dispute, which is the matter of trial, cannot become the subject matter of I&B Code when the main object of the I&B Code is resolution and not the recovery. In other way, it can be said "resolution is rule and liquidation is exception". The same is evident from the long title of the IB Code. On perusal of the various correspondence as also the Notice of Dispute and the paper publication, it is clear that there is/are pre-existing ongoing dispute(s) between the parties which require further investigation. It is admitted by the Operational Creditor that he has not used the Tata Steel as assured - while recovery bleeds the "Corporate Debtor" to death, resolution endeavours to keep the "Corporate Debtor" alive. If fact, the IB Code prohibits and discourages recovery several ways. The petition is dismissed on the ground of pre-existing dispute.
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