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TMI Blog2018 (1) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... nt petition is found devoid of any merit. Given the abovesaid discussion, we have no hesitation to hold that this petition deserves admission under section 9 of I&B Code. Accordingly, we admit this Petition u/s. 9 of the Code declaring a moratorium for the purposes referred to in section 14 of the Code - Company Petition (IB) NO. 549/KB/2017 - - - Dated:- 11-12-2017 - MR. V.P. SINGH AND MR. JINAN K. R., JJ. For The Operational Creditor : Nitu Poddar, PCS And Barsha Diksit, PCS For The REspondent/Corporate Debtor : Abitya Sharma, Advocate ORDER Per Jinan K.R., Member (J.) The Operational Creditor has filed the present application for initiation of Corporate Insolvency Resolution Process in respect of Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code, 2016. 2. The petitioner, operational creditor namely Badjate Stock Shares Pvt. Ltd. has filed an application Under Section 9 read with Rule 6 of the Insolvency and Bankruptcy Code, 2016 for (hereinafter called as Code ) initiating Insolvency Resolution Process against the respondent Company/Corporate Debtor Snowblue Trexim Private Limited, claiming that the respondent defaulted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Insolvency Resolution Process. 6. The respondent entered appearance and filed reply in the form of affidavit in opposition contending in brief is the following: - The respondent admitted the services from the petitioner/operational creditor. The respondent contended that the petitioner is the Trading Member with the National Stock Exchange and is bound by the Rules and Regulations as enforced by the Stock Exchange time to time. 7. The respondent also contended that the petitioner in its form for opening the trading has clearly mentioned that all trades, transactions and contracts are subject to the rules, bye-laws, and regulations of the stock exchanges wherein the bye-laws of NSE States categorically that all claims, differences or disputes between the Trading member s interest and between Trading members and Constituents arising out of or in relation to dealings, contracts and transactions shall be submitted to Arbitration. 8. The respondent also contended that the petitioner functioned in flagrant violation of the well-settled trading principles and in complete violation of SEBI guidelines and NSE regulations illegally and unethically carried out its conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te insolvency resolution process. To understand the principle laid down in the citation above referred it is good to read para 40 of the judgment. It read as follows: - 40. it is clear, therefore, that once the operational creditor has filed an application, which is otherwise complete, the adjudicating authority must reject the application under Section 9(5)(2)(d) if the operational creditor has received notice of dispute or there is a record of dispute in the information utility. 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 defence which is mere bluster. However, in doing so, the Court does not need to be satisfied that the defence is likely to succeed. The Court does not at this stage exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -existing prior to receipt of the demand notice by the respondent. Such a fact not at all established in this case on the side of the respondent. In the reply notice Annexure, A-11 the respondent contended that it raised a dispute personally before the petitioner and showed its willingness to raise their dispute before Regulator i.e./Stock exchange/Depositaries since they are appropriate and immediate forum to resolve dispute between petitioner and the respondent as per law and terms of contract as prescribed by the SEBI. This reply was send by the respondent on 11.07.2017. No proof produced in support of oral intimation of dispute to the petitioner prior to the date of receipt of the demand notice by the respondent. The demand notice was received by the respondent on 28.06.2017. In the absence of proof to prove that the respondent raised the dispute as highlighted in the reply prior to the receipt of the notice from the petitioner we find no merits in the contention of the respondent that there was a pre-existing dispute as alleged. Thus, the contention of the respondent that a dispute was in existence and therefore a petition of this nature is not maintainable is found devoid of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a genuine dispute. This point is answered accordingly. 20. In view of the above said factors and bear in mind the principle laid down in the above cited case the contentions of the respondent that there was pre-existing dispute regarding the services given by the petitioner to the respondent and that pendency of arbitration proceedings initiated at the instances of the respondent bar the instant petition is found devoid of any merit. Given the abovesaid discussion, we have no hesitation to hold that this petition deserves admission under section 9 of I B Code. 21. Accordingly, we admit this Petition u/s. 9 of the Code declaring a moratorium for the purposes referred to in section 14 of the Code with following directions: (i) That this Bench, subject to provisions of sub-sections (2) (3) of section 14 of the Code, hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, Tribunal arbitration panel or other authority; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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