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TMI Blog2018 (8) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... ggests the need for elaborate investigation. The moment there is existence of such a pre-existing dispute, the corporate debtor gets out of the clutches of the Code. In the facts of the case we are satisfied that a dispute truly exists much prior to the issuance of Section 8 notice. Not only there is a pre-existing dispute but also the respondent company in its reply to the Section 8 notice has clearly communicated to the applicant the fact of ‘existence of dispute’. Section 9(5)(ii)(d) of the Code provides that adjudicating authority shall reject the application if notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility. Present petition fails and the same is rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiation of Corporate Insolvency Resolution Process in respect of respondent corporate debtor under sub-section (1) of Section 60 of the Code. 4. It is the case of applicant that in response to the various purchase orders issued by the respondent during the year 2015 and 2016 the applicant had supplied the material i.e. paints/coatings to the respondent, for which the Creditor has raised different invoices. It is submitted that the applicant had raised seventeen invoices for the sale price of the aforesaid paints/coatings for an amount of ₹ 72, 28,213/- (Rupees Seventy Two Lakhs Twenty Eight Thousand Two Hundred Thirteen Only). 5. Thereafter since the respondent had failed to make the payment of ₹ 72,28,213/- (Rupees Sevent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the applicant. A bare perusal of the e-mails clearly shows that there is a pending dispute regarding defects and delay caused in supply of goods between the parties since October, 2015, which is much before the issuance of demand notice by applicant. 8. Dispute has been defined under the Code in Section 5(6), which envisages that: (6) dispute includes a suit or arbitration proceedings relating to- (a) the existence of the amount of debt; (b) the quality of goods or services; or (c) the breach of a representation or warranty. 9. It is now settled that the definition of dispute is inclusive and not exhaustive. Dispute has been given a wide meaning so as to cover all disputes on debt, default etc. and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 examine the merits of the dispute except to the extent indicated above. So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the adjudicating authority has to reject the application. (Emphasis added). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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