2018 (1) TMI 906

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....ng noticed that there is an 'existence of dispute' between the parties, the Adjudicating Authority (National Company Law Tribunal) New Delhi Bench by the impugned order dated 23rd October, 2017 rejected the application No. (IB) -367(ND)/2017. 2. Learned counsel appearing on behalf of the appellant submitted that the defects as were pointed out has already been rectified. After rectification of the defects, there was no dispute since 30th June, 2016. 3. From the record, we find that the Adjudicating Authority has referred to the correspondence between the parties on different dates such as 1st October, 2015, 10th February, 2016, 16th May, 2016 etc. By those letters, the Corporate Debtor had specifically alleged that the Operational....

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.... pending in a suit or arbitration proceedings and not otherwise. This would lead to great hardship; in that a dispute may arise a few days before triggering of the insolvency process, in which case, though a dispute may exist, there is no time to approach either an arbitral tribunal or a court. Further, given the fact that long limitation periods are allowed, where disputes may arise and do not reach an arbitral tribunal or a court for upto three years, such persons would be outside the purview of Section 8(2) leading to bankruptcy proceedings commencing against them. Such an anomaly cannot possibly have been intended by the legislature nor has it so been intended. We have also seen that one of the objects of the Code qua operational debts ....