Petition dismissed under Insolvency & Bankruptcy Code section 9 for lack of dispute.

The Tribunal dismissed the petition under section 9 of the Insolvency & Bankruptcy Code, stating that the Corporate Debtor's response regarding the pending suit within the stipulated time frame fulfilled the requirements of the Code, making the petition not maintainable. The judgment focused on the interpretation of the term "existence of dispute" and the Corporate Debtor's compliance with the statutory provisions, leading to the rejection of the petition.

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Issues:
1. Maintainability of the petition under section 9 of the Insolvency & Bankruptcy Code, 2016.
2. Existence of dispute and pendency of suit between the Operational Creditor and the Corporate Debtor.

Analysis:
1. The Operational Creditor filed a petition under section 9 of the I&B Code against the Corporate Debtor for non-payment of dues. The Corporate Debtor had earlier faced winding-up petitions which were dismissed due to technical grounds. The Operational Creditor contended that the Corporate Debtor's dispute raised after the notice was an afterthought to avoid the current petition. The Corporate Debtor argued that the suit filed by them prior to the notice made the petition not maintainable. The Tribunal observed that the Corporate Debtor had replied to the demand notice within 10 days, pointing out the pending suit, as required by the I&B Code. The Tribunal held that the Corporate Debtor's response was in line with the provisions, making the petition not maintainable.

2. The key issue revolved around the interpretation of the term "existence of dispute" in section 8(2)(a) of the I&B Code. The Operational Creditor argued that the dispute should have been raised before any previous proceedings, while the Corporate Debtor maintained that the suit filed before the notice made the petition invalid. The Tribunal clarified that the Corporate Debtor's timely response to the demand notice, highlighting the pending suit, fulfilled the requirements of the Code. The Tribunal emphasized that the Code allows the Corporate Debtor to show the existence of a dispute within 10 days of receiving the notice, which was done in this case. The Tribunal concluded that the dispute was not feeble and the petition was not maintainable, ultimately rejecting the petition under section 9 of the I&B Code.

In conclusion, the Tribunal dismissed the petition under section 9 of the I&B Code, stating that the Corporate Debtor's response regarding the pending suit within the stipulated time frame fulfilled the requirements of the Code, making the petition not maintainable. The judgment focused on the interpretation of the term "existence of dispute" and the Corporate Debtor's compliance with the statutory provisions, leading to the rejection of the petition.

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