TaxTMI 
TaxTMI 
2019 (3) TMI 251
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....m at Singareni project in the state of Telengana. Amount of letter of intent was fixed at Rs. 14,59,03,661/- as per the price break-up of which more details are available with the letter of intent. The corporate debtor placed purchase orders in (exhibit-6) dated 11.04.2014. That purchase order was accepted by the operational creditor subject to certain terms and conditions set out in detail along with the purchase order. 3. The Operational Creditor stated in separate affidavit running in almost 10 pages that as to how the corporate debtor committed default in paying the debt. It is not necessary to reproduce all their contentions. Suffice to say that in para 2.2.1 in the affidavit, the operational creditor stated as to how the debt becomes due in the following words: "The petitioner states that from the beginning, there was lack of coordination and supervision from the corporate debtor's end which led to delay the project. Various requests made by the petitioner for providing site availability, schedules were never responded by the corporate debtor. Though the completion date of the work was fixed to June, 2015, fronts were not made available for the petitioner by the Corporate ....
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....tional creditor The Operational Creditor was having lack of preparedness to execute the project from the very beginning. The operational creditor never mobilised adequate resources at the site as expected by them. It was for the operational creditor to prepare design, engineering of firefighting system, the supply of required materials and successful commencement of this system at the project site as per the agreement entered in between them. The operational creditor failed to execute the work of execution of firefighting system as agreed. They were required to deploy another contractor to complete the task for which they required to incur huge expenditure. They have already encashed performance bank guarantee given by the operational creditor, upon failure of the operational creditor to complete the task. In fact, they are entitled to recover the amount towards damages from the operational creditor". 7. They further contended that through various correspondences dated 7.10.2016, 25.08.2017, 3.5.2017, 07.06.2017, 04.7.17, 01.07.2017, 05.07.2017 and 25.08.2017, they have already brought to the notice of the operational creditor that they were failing in executing the work of erecti....
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.... the I&B Code and if he does not receive payment or intimation of existence of dispute or pendency of suit or arbitration proceedings relating to such debt. 12. Section 8(2)(a) of the I&B Code mandates the corporate debtor to inform the operation creditor within ten days on receipt of the notice or invoice about the existence of dispute relating to the debt or that he made the payment. The Hon'ble NCLAT has considered as to what does mean, "existence of dispute in company Appeal (AT) (Insolvency) No.56 of 2017 in the case of P.K. Ores (P.) Ltd. v. Tractors India (P.) Ltd.. So also the Hon'ble Apex Court in the case of Mobilox Innovations Private Ltd. (supra) has also explained the term what does mean "existence of dispute" in the following words: "40. It is clear, therefore, that once the operational creditor has filed an application, which is otherwise complete, the adjudicating authority must reject the application under Section 9(5)(2)(d) if notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility. It is clear that such notice must bring to the notice of the operational creditor the "existence" of a dispute or ....
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....e Operational Creditor submitted that although the summary procedure is contemplated at the stage of admission of the CIRP but this authority has to go through the relevant documents and materials produced by the parties so as to record answer as to whether the dispute as raised is a genuine or spurious. In my considered opinion, to know whether the dispute about the debt is genuine or not, it is not necessary to go through numbers of documents produced by the parties. Suffice to read some of the relevant document is enough to know the nature of dispute. 15. In this case, by letter of intent dated 01.07.2014 (exhibit -5), the Corporate Debtor placed the order to supply materials and also gave offer to the operational creditor to erect the firefighting system as per the copy of agreement attached thereto. On 10.12.2014, the operational creditor sent first letter to the corporate debtor raising some issues, say as (i) the list of drawings and documents submitted by successful bidder (may be subcontractor) for stacker reclaimer area but they did not indicate the provisions for FDPS in the said area; (ii) in para 2, sub-section (m)(ii) clause No, 3.03 may be only agreement area to be ....