9911796707
TMI Blog2019 (9) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 9 of the Insolvency and Bankruptcy Code, 2016 ( I B Code ) for initiation of Corporate Insolvency Resolution Process ( CIRP ) against DSV Air Sea Pvt Ltd, the Corporate Debtor is rejected. X X X X Extracts X X X X X X X X Extracts X X X X ..... inery parts on the days on which the cargo was agreed to be delivered. IT was explicitly understood and agreed between the parties that time was of the essence and that cargo was to be delivered to the Corporate Debtor's client within the strictly prescribed timeline, failing which all idling costs and losses would be deductible from any payment due. However, due to the Operational Creditor's breach of the agreed terms, the cargo was delivered extremely late and in breach of the agreed terms." 6. It is further contended by the Corporate Debtor that Operational Creditor lost the cargo and was unable to trace its truck drivers who were carrying the cargo and as a result, it had to send its employees to trace the cargo along the possible rou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing costs and losses would be deductible from any payment due. However, due to the Operational Creditor's breach of the agreed terms, the cargo was delivered extremely late and in breach of the agreed terms. Further, the said issue was raised by the Corporate Debtor promptly. The Corporate Debtor has annexed certain email communications with the Operational Creditor raising the dispute. 9. We have heard the arguments and perused the records. On perusal of the records, it is observed that there was a pre-existing dispute which was brought to the notice of the Operational Creditor before the receipt of the Demand Notice by the Corporate Debtor 10. It is pertinent to note the email of the Corporate Debtor dated 29.9.2015 sent to the Operat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, 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 notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility. It is clear that 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 argume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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