Dismissal of Insolvency Petition: Lack of Grounds, Pre-existing Dispute, and Restarted Limitation Period

The Tribunal dismissed the petition as the petitioner failed to establish grounds for commencing insolvency proceedings against the Corporate Debtor due to a pre-existing dispute and lack of merit in the claims made. The limitation period was not a bar to the petition as it was restarted by a cheque issued after the alleged expiry date.

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Issues Involved:
1. Whether the petition is barred by limitationRs.
2. Whether there is a pre-existing dispute as claimed by the Corporate DebtorRs.
3. Whether the petitioner made out a case to commence the Insolvency Resolution Process against the RespondentRs.

Issue (a):
The Law of Limitation is applicable to proceedings under IBC, 2016. The Corporate Debtor argued that the limitation expired in June 2016, based on the period of due amount. However, a cheque issued by the Corporate Debtor on 02.05.2017 restarted the limitation period. Thus, the petition is not barred by limitation.

Issue (b):
The petitioner had filed an application with MSEFC before issuing a demand notice, indicating a pre-existing dispute. Citing the judgment in M/s. Mobilox Innovations Private Limited Vs Kirusa Software Private Limited, the Corporate Debtor claimed a genuine dispute based on faulty accessories discussed in email correspondences. The existence of a pre-existing dispute led to the rejection of the application under section 9 of the Code.

Issue (c):
Given the presence of a pre-existing dispute, the Tribunal found that the petitioner failed to establish grounds for initiating corporate insolvency proceedings against the Respondent. Consequently, the petition was dismissed.

In conclusion, the Tribunal dismissed the petition based on the absence of a valid case for invoking insolvency proceedings against the Corporate Debtor, as the pre-existing dispute and lack of merit in the petitioner's claims were established during the proceedings.

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