TMI Blog2017 (10) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... iate the evidentiary value of the dispute. What is required to be assessed is that the dispute in the present proceedings is not patently false or a moonshine defence, raised only to resist initiation of any Insolvency Resolution Process against them. In the case at hand, various objections were taken prior to initiation of the procedure under the Code, some of which may have been redressed and some still not to the satisfaction of the Corporate Debtor. A company that sets up a plant involving a huge expense as in the present case does so with the hope of achieving a faultless product. The existing disputes with respect to the alleged deficiencies in respect of services rendered in the implementation of the project can only be adjudicate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also an important factor, as the production had to meet the market demand. However, all civil construction was to be done by the Corporate Debtor themselves. 2. It is the Petitioner's case that against the invoices raised on the Respondent which included the tax liability undertaken to be paid by them, they have received an amount against of ₹ 10,16,47,601/- leaving a balance of ₹ 81,48,130.56/- as the outstanding debt. Despite various reminders it is averred that the Respondent has failed to liquidate this liability and therefore, the present petition has been filed by the Petitioner as an Operational Creditor seeking initiation of Corporate Insolvency Resolution Process of the Respondent/Corporate Debtor under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentation in performance had been raised from time to time. Amongst other correspondence, reliance is placed on the replies to the legal notices and a compilation of mails, annexed as Annexure R3 to the counter affidavit sent by the Corporate Debtor. In the various communications points in disputes have been specifically enumerated. Several meetings were held where due rectification was pointed out and undertaken to be carried out by certain dates. It had been brought to the notice of the Operational Creditor the they had failed to supply the scanner, vibrator, grinder as per the process diagram and the drawings submitted by them. The product manufactured was not satisfactory on account of impurities and other foreign material imparted in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tensive losses. Vide their email dated 31st May, 2016, the Corporate Debtor had notified their intention of recovering damages from the Operational Creditor on all the aforesaid counts. 7. Ld. PCS appearing for the Operational Creditor has stated that the delay, if any, in implementation of the project was on account of the delay in carrying out the civil works which was the sole responsibility of the Corporate Debtor. He has also emphasised that the outstanding debt is on account non-payment of Service and other taxes, which is primarily the responsibility of the end user, not only under law, but also under the agreement. There is, however, no cogent explanation offered in respect of non-supply of the packaging machinery or the non-exec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itiation of the procedure under the Code, some of which may have been redressed and some still not to the satisfaction of the Corporate Debtor. A company that sets up a plant involving a huge expense as in the present case does so with the hope of achieving a faultless product. The existing disputes with respect to the alleged deficiencies in respect of services rendered in the implementation of the project can only be adjudicated in another form, which we are informed is vide initiation of arbitration proceedings. 12. This Bench is of the opinion that it is not to examine the merits of the dispute. Since we find that the defence is not spurious or set up to resist the Resolution Process, and existed prior to the issuance of the notice t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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