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2022 (5) TMI 872 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - pre-existing dispute in between the Operational Creditor and the Corporate Debtor pending about the quality of goods supplied or not - HELD THAT:- The dispute in between the directors/shareholders of the Operational Creditor cannot be a defense available for the Corporate Debtor for not paying the Operational Creditor its operational debt, which is otherwise payable under the Law. Whether, one of the directors of the Operational Creditor; Mr. Mayer can file this application for and on behalf of the Operational Creditor? - HELD THAT:- The dispute in between directors/shareholders of the Operational Creditor is no defense available to the Corporate Debtor to request this authority to dismiss this application. Section 11 of the LB. Code, 2016 does not bar director of the Operational Creditor from initiating the CIRP against the Corporate Debtor under Section 9 of the LB. Code. In view of material and evidence on record, it is held that Mr. Andrew Mayer, being an authorized signatory of the Operational Creditor has rightly filed this application. The Corporate Debtor in its e-mail dated 23.01.2020 has clearly stated that there was no dispute except agenda of paying money for the machinery and raw materials not ordered for. In short, dispute about quality of goods has never been raised by the Corporate Debtor at any point of time. The other emails produced on record do not pertain to the dispute of quality goods. The Operational Creditor has successfully established that the operational debt of rupees one crore (as per the threshold limit provided under Section 4 of the LB. Code) is due and payable by the Corporate Debtor to the Operational Creditor and the Corporate Debtor, in-spite of receipt of demand notice did not pay the amount and has committed the default. There is no pre-existing dispute about the quality of goods or materials supplied. This application is free from defect. Hence, the application admitting the Corporate Debtor in CIRP is allowed. Petition admitted - moratorium declared.
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