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2020 (9) TMI 510 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- The Bench is of the view that as far as the subject relating to the return of stocks to the Bhiwandi warehouse of Corporate Debtor is concerned, there is no dispute and the same has been admitted by the Corporate Debtor. There is no written agreement between the Petitioner and the Corporate Debtor. Hence the Corporate Debtor's contention that it was categorically agreed between the parties that in case of return of stocks by the Petitioner to the Corporate Debtor, the Corporate Debtor would receive its payments only upon the acceptance of the stocks by the principal supplier, is not borne out by facts. The Bench is of the view that there may be disputes between the Corporate Debtor and the principal supplier to whom the Corporate debtor has ultimately returned the product. However, the legitimate claims of the Corporate Debtor can certainly not depend and held hostage to the settlement of dispute, if any, between the corporate debtor and a third party. The Application under sub-section (2) of Section 9 of I&B Code, 2016 filed by the Operational Creditor for initiation of CIRP in prescribed Form 5, as per the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 is complete. The existing operational debt is beyond the threshold limit against the Corporate Debtor and its default is also proved. Accordingly, the application filed under section 9 of the Insolvency and Bankruptcy Code for initiation of corporate insolvency resolution process against the Corporate Debtor deserves to be admitted. Petition admitted - Moratorium declared.
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