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TMI Blog2017 (10) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 9 of the I&B Code, 2016 is dismissed. Learned Adjudicating Authority will now close the proceeding. The appellant company is released from all the rigour of law and is allowed to function independently through its Board of Directors from immediate effect. Learned Adjudicating Authority will fix the fee of 'Interim Resolution Professional', if appointed, and the Respondents will pay the fees of the Interim Resolution Professional, for the period he has functioned. The appeal is allowed with aforesaid observation and direction. X X X X Extracts X X X X X X X X Extracts X X X X ..... "Operational Creditor" was returned due to incorrect address, it was the duty of the "Operational Creditor" to provide the correct and present address of the 'Corporate Debtor" before preferring any application under section 9 of the I & B Code. 7. In any case, it is accepted that no notice was issued by the Adjudicating Authority before admission of the application. 8. In "MIs. Innoventive Industries Ltd. v. ICICI Bank & Anr - Company Appeal (AT) (Insolvency) No. 1 & 2 of 2017", this Appellate Tribunal held: "53. In view of the discussion above, we are of the view and hold that the Adjudicating Authority is bound to issue a limited notice to the corporate debtor before admitting a case for ascertainment of existence of default based on material submitted by the financial creditor and to find out whether the application is complete and or there is any other defect required to be removed. Adherence to Principles of natural justice would not mean that in every situation the adjudicating authority is required to afford reasonable opportunity of hearing to the Corporate debtor before passing its order." 9. In view of the such decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imal for Our Client's requirements and would greatly benefit Our Client's business. Agreeable to the above, Our Client opted for the higher category of services offered by Your Client. 4. However, despite availing the New Service, there was no change in the speed or quality from that of the Service itself Our Client brought this to Your Client's attention on numerous occasions and requested that they address the same considering that Your Client had commenced invoicing Our Client as per the rates for the New Service. Despite further, it was brought to Your Client's notice that the New Service's failure to live up to Your Client's promises are "Priority Level Problems" as provided for in Annexure lV of the Agreement. 5. The above situation persisted for a few months upon availing the New Service. Thereafter, in February 2016, rather than address the problems highlighted above, Your Client abruptly terminated the Agreement, leaving Our Client in the lurch and scrambling for alternatives to continue the Service. Your Client made a demand for payment of the outstanding invoices for the period commencing November 2015 and ending February 2016 for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the party, a labourer/employee who may claim to be operation creditor for the purpose of Section 9 of I&B Code, 2016 may have raised the dispute with the State Government concerning the subject matter i.e. existence of amount of debt and pending consideration before the competent Government. Similarly, a dispute may be pending in a Labour Court about existence of amount of debt. A party can move before a High Court under writ jurisdictions against Government, corporate debtor (public sector undertaking). There may be cases where one of the party has moved before the High Court under Section 433 of the Companies Act, 1956 for initiation of liquidation proceedings against the corporate debtor and dispute is pending. Similarly, with regard to quality of foods, if the 'corporate debtor' has raised a dispute, and brought to the notice of the 'operational creditor' to take appropriate step, prior to receipt of notice under sub-section (1) of Section 8 of the 'I& B Code', one can say that a dispute is pending about the debt. Mere raising a dispute for the sake of dispute, unrelated or related to clause (a) or (b) or (c) of Sub-section (6) of Section 5, if not rais ..... X X X X Extracts X X X X X X X X Extracts X X X X
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