Serious dispute over debt claim leads to rejection of insolvency application under Bankruptcy Code.

The Tribunal found a serious dispute between the Operational Creditor and the Corporate Debtor regarding the debt claimed, leading to the rejection of the Section 9 application under the Insolvency and Bankruptcy Code. The Corporate Debtor raised issues of overpayment and lack of documentation, asserting the need for resolution through a Civil Suit. The Tribunal emphasized the necessity of proper adjudication through legal channels, ultimately deeming the application not maintainable.

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Issues Involved:
Application under Section 9 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process (CIRP) due to default in paying operational debt. Dispute regarding the amount claimed by the Operational Creditor against the Corporate Debtor.

Analysis:

Issue 1: Default in Paying Operational Debt
The Operational Creditor, M/s Anjani Gases, filed an application under Section 9 of the Insolvency and Bankruptcy Code against the Corporate Debtor, M/s B.P. Projects Pvt. Ltd., for defaulting on payment of operational debt amounting to Rs. 1,45,74,133. The Operational Creditor supplied Industrial Oxygen Cylinders, Carbon dioxide Cylinders, and LPG Cylinders to the Corporate Debtor between 15.06.2014 to 31.05.2016, with an outstanding amount of Rs. 1,10,23,431 along with interest. Despite repeated demands and a notice sent under Section 8 of the Code, the Corporate Debtor failed to pay, leading to the initiation of CIRP.

Issue 2: Dispute Regarding Amount Claimed
The Corporate Debtor contested the claim, stating that there was a serious dispute regarding the amount owed. They alleged that the Operational Creditor had been overpaid by Rs. 5,56,889 and raised issues about holding charges, delivery charges, and the lack of tax invoices. The Corporate Debtor argued that the dispute required adjudication through a Civil Suit due to the complexities involved. They also highlighted the Operational Creditor's filing of false FIRs against them, challenging the FIR through a Writ Petition.

Judgment
After reviewing the evidence and arguments presented, the Tribunal found that a serious dispute existed between the Operational Creditor and the Corporate Debtor regarding the amount of debt claimed. The Corporate Debtor had brought this dispute to the notice of the Operational Creditor, and the existence of a genuine dispute was confirmed. As per the provisions of the Insolvency and Bankruptcy Code, the application under Section 9 was deemed not maintainable. Consequently, the Tribunal rejected the petition, emphasizing the need for proper adjudication of the dispute through appropriate legal channels.

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