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2021 (6) TMI 493 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - HELD THAT:- It is a settled position of law that the provisions of Code cannot be invoked for only for recovery, but only for justified reasons as per the Code. The Hon'ble Supreme Court in the case of Mobilox Innovations Private Limited v. Kirusa Software Private Limited [2017 (9) TMI 1270 - SUPREME COURT] has inter alia held that I & B Code, 2016 is not intended to be a substitute to a recovery forum and cannot be used to jeopardise the financial health of an otherwise solvent company by pushing it into insolvency. There is a dispute regarding the quality of services of the Petitioner which need a trial at relevant forum and this forum cannot be misused as a substitute to recovery mechanism - Further on perusal of the Master data available on the MCA Website, it is seen that no charges exist against the Respondent company, and it is active and compliant. The Petitioner has not provided any document to show that the Respondent company is insolvent so as to initiate corporate insolvency resolution process against the company. This petition has been filed with an intention to substitute recovery proceedings with an application under section 9 of the Code, 2016 which defeats the objects of the Code - Petition dismissed.
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