TMI Blog2019 (7) TMI 1569X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in withholding the amount/ retention money is not for the consideration of this Bench. The disputes in-existence pertain to an outstanding liability for which a provision for resorting to arbitration exists. The defence raised by the Corporate Debtor needs adjudication which may or may not culminate in their favour, but suffice it to say that a plausible defence has been raised by way of a dispute, raised prior to the issuance the demand notice under section 8 of the Code, which prima facie does not appear to be mere moonshine. This Bench is of the view that the prayer for initiating Corporate Insolvency Resolution process of the Corporate Debtor is not sustainable - Petition rejected. - (IB)-645(ND)2019 - - - Dated:- 18-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Bankruptcy Code was issued to the Corporate Debtor demanding the outstanding balance together with the interest accruing thereon as well as the GST and other charges payable. This demand notice was duly replied to by the Corporate Debtor disputing any liability. 4. On notice of the petition being issued, the Corporate Debtor has put in their appearance and have filed their reply. 5. Ld. counsel for the Operational Creditor has reiterated the aforesaid facts and has argued that without prejudice to his rights and contentions in the present case, even assuming if the deduction as stated by the Corporate Debtor are taken into consideration, the outstanding amount due is ₹ 241,58,130/- inclusive of ₹ 69 lakhs as the rete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icks, Scaffolding Material, Sand, Badarpur etc. Recovery against client supplied labour Debit against incomplete work which was executed by third party on your risk and cost Debit against quality. Tax deductions as per work done and payment. Recovery against reconciliation of material as per work order terms and condition. Balance (if any) will be considered at the time of finalization. Up to Finalization of submitted bills, we negate your exaggerated claim. Any other information/ detail required not stated as above will be intimated to you after recived receipt of above information. This mail is without prejudice to all our rights which are hereby expressly reserved. Thanks Regards, Rahul Rajvans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year after submission/ reconciliation and acceptance of the final bill, which in this case has not been done. 11 . Be that as it may, on appraisal of the arguments advanced by the Id. counsels, it emerges that there were disputes existing prior to the issuance of the Demand Notice. We find the mails on record corroborate the Corporate Debtor's defence that a dispute in respect of the payment claimed existed even prior to the issuance of the demand notice. A pre- existing dispute does not entitle the Operational Creditor to seek Insolvency Resolution of the Corporate Debtor. Whether the Corporate Debtor is entitled to seek recovery or is justified in withholding the amount/ retention money is not for the consideration of this Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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