TaxTMI 
TaxTMI 
2017 (10) TMI 857
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....cation to Adjudicating Authority) Rules, 2016 (for brevity the 'Rules') by the "Operational Creditor" for initiating the insolvency resolution process. The application has been filed in Form No.5 as prescribed in the Rules. The contents of the application are supported by the affidavit of Anshul Singhania, Director of the petitioner company in whose favour, the Company has passed a resolution dated 18.07.2017 to initiate the Corporate Insolvency Process against the respondent-corporate debtor. Copy of resolution is at Annexure A-2. The petitioner Company was incorporated under the Companies Act, 1956 on 18.05.1995. 2. The Respondent/Corporate Debtor was incorporated on 03.07.2000 having its registered office at Ludhiana and therefore, th....
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....btor on 24.07.2017 as per the track report. Neither the payment was made despite the expiry of ten days' period nor the petitioner received any notice of dispute from the Corporate Debtor. 5. The petitioner has also furnished the affidavit dated 21.08.2017 to the effect that after the service of demand notice, the Corporate Debtor deposited an amount of Rs.1 Lac, which fact is also confirmed by the financial institution of the petitioner. The certificate dated 17.08.2017 issued by the Financial Creditor i.e. HDFC Bank is at Annexure A-6. It is certified that the amount of Rs.1 Lac was deposited by the Corporate Debtor in the account of the petitioner on 03.08.2017 and no other amount has been credited in this account by the respondent si....
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....or consideration, is whether there is any notice of the dispute on behalf of the Corporate Debtor received by the Operational Creditor. There is an affidavit dated 21.08.2017 by the Authorised Representative that the petitioner has not received the full payment despite the service of demand notice nor the Operational Creditor has received any notice of dispute from the Corporate Debtor. 11. Sub-section (1) and (5) of Section 9 of the Code read as under:- "(1) After the expiry of the period of ten days from the date of delivery of the notice or invoice demanding payment under sub-section (1) of section 8, if the operational creditor does not receive payment from the corporate debtor or notice of the dispute under sub-section (2) ....
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....rational creditor or there is a record of dispute in the information utility; or (e) any disciplinary proceeding is pending against any proposed resolution professional: Provided that Adjudicating Authority, shall before rejecting an application under sub-clause (a) of clause (ii) give a notice to the applicant to rectify the defect in his application within seven days of the date of receipt of such notice from the Adjudicating Authority." 12. There is a clear default committed by the respondent and this fact has not even been disputed nor any response has been filed despite opportunity having been granted. No defect in the application has been found or pointed out and there is compliance of the mandatory requirements o....