Appeal against admission of Section 9 application dismissed for lack of pre-existing dispute.

The appeal challenging the admission of an application under Section 9 by the Operational Creditor against the Corporate Debtor was dismissed. The Tribunal found no evidence of a pre-existing dispute based on the communication between the parties regarding Bank Guarantee and Custom Clearance matters. It was established that the required clearances were obtained and services were rendered without dispute on the service quality. The Adjudicating Authority rightly admitted the application under Section 9, leading to the dismissal of the appeal and the Company Appeal (AT) Insolvency No.46 of 2019.

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Issues:
1. Maintainability of application under Section 9 due to pre-existing dispute.

Analysis:
The appeal was against the order admitting an application under Section 9 filed by the Operational Creditor against the Corporate Debtor. The Appellant argued that there was a pre-existing dispute, citing e-mails exchanged between the parties. The Respondents contended that the e-mails did not indicate any pre-existing dispute regarding the services provided by the Operational Creditor. It was highlighted that the Corporate Debtor did not respond to the admission notice under Section 8(1) issued earlier. The e-mails presented by the Appellant were examined, revealing a communication regarding Bank Guarantee and Custom Clearance matters. The Appellant acknowledged the absence of a separate agreement but argued that the Bank Guarantee and Custom Clearance were the responsibility of the Operational Creditor. However, it was established that the required clearances were obtained and services were rendered by the Respondents without any dispute on the quality of services. The Tribunal found no evidence to suggest that the Bank Guarantee clearance for the EPCG Scheme was part of the Operational Creditor's responsibilities. The Respondents clarified that the Bank Guarantee and related Scheme were not connected to the services provided. Consequently, the absence of a pre-existing dispute led the Adjudicating Authority to rightly admit the application under Section 9, resulting in the dismissal of the appeal and the Company Appeal (AT) Insolvency No.46 of 2019.

This comprehensive analysis of the judgment delves into the core issue of the maintainability of the application under Section 9 in light of the alleged pre-existing dispute. The detailed examination of the arguments presented by both parties, along with the Tribunal's assessment of the evidence provided, offers a thorough understanding of the decision-making process and the reasoning behind dismissing the appeal.

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