TMI Blog2019 (3) TMI 1520X X X X Extracts X X X X X X X X Extracts X X X X ..... efault of the operational debt is more than ₹1,00,000/-. Therefore, the plea taken by the Corporate Debtor in respect of VAT is not sustainable. The dispute about non depositing of the VAT amount after its collection is a different issue,but this issue is not covered in the definition of existing dispute. However the issue of VAT has been raised only after receiving the demand notice, which shows that issue of VAT has been raised for creating the defence. The Demand notice demanding payment was served upon the Corporate Debtor, after that, the Corporate Debtor had filed reply to the Demand Notice wherein it had admitted that that it has to pay the Principal amount to the Operational Creditor. As appears from the record that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reditor supplied various materials and was dealing with the Corporate Debtor for the past four years. The Operational Creditor has supplied goods to the Corporate Debtor and has timely raised invoices upon the Corporate Debtor. However the payment against the two of the invoices, by way of which the Operational Creditor has supplied CR Sheet to the Corporate Debtor on 30th November 2014, remained partly unpaid. The outstanding amount against the invoices aggregates to ₹38,82,916/-. Out of which the Corporate Debtor has paid an aggregate amount of only ₹1,10,486/-, leaving a balance principal of ₹37,72,430/. According to Operational Creditor the last payment of ₹10,00,000/- was paid on 15 18 September, 2017. The i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014-2015 16,79,290 11,40,710 2015-2016 1,26,893 57,102 Total 28,13,569 18,01,726 4. The Operational Creditor issued a demand notice dated 6thMarch 2018 under Section 8 of Insolvency Bankruptcy Code, 2016. After that, the Corporate Debtor replied to the Demand notice by a letter undated which was received by the Operational Creditor on 17thMarch 2018. In the said reply, the Corporate Debtor has not denied the amount claimed in the Demand Notice and also has not raised any dispute. 5. Furthermore, the Ld. Counsel for the Operational Creditor also states that the Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he operational creditor or there is a record of dispute in the information utility. It is clear that such notice must bring to the notice of the operational creditor the existence of a dispute or the fact that a suit or arbitration proceeding relating to a dispute is pending between the parties. Therefore, all that the adjudicating authority is to see at this stage is whether there is a plausible contention which requires further investigation and that the dispute is not a patently feeble legal argument or an assertion of fact unsupported by evidence. It is important to separate the grain from the chaff and to reject a spurious defense which is mere bluster. However, in doing so, the Court does not need to be satisfied that the defense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the operational debt is more than ₹1,00,000/-. Therefore, the plea taken by the Corporate Debtor in respect of VAT is not sustainable. The dispute about non depositing of the VAT amount after its collection is a different issue,but this issue is not covered in the definition of existing dispute. However the issue of VAT has been raised only after receiving the demand notice, which shows that issue of VAT has been raised for creating the defence. 9. Given the above facts, that the Demand notice demanding payment was served upon the Corporate Debtor, after that, the Corporate Debtor had filed reply to the Demand Notice wherein it had admitted that that it has to pay the Principal amount to the Operational Creditor. 10. It appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (ii) The supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. (iii) The provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector ..... X X X X Extracts X X X X X X X X Extracts X X X X
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