2020 (1) TMI 1264

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.... to Adjudicating Authority) Rules, 2016 ('IB Rules' for short) for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor, Garden Silk Mills Limited for the recovery of the unpaid Operational Debt. 2. The Petitioner, Horizon Translifters Pvt. Ltd. is a company incorporated under the Companies Act, 1956. The Petitioner is having its registered office at C-911, 9th Floor, Siddhi Vinayak Tower-C, Behind DCP Office, Off S.G. Highway, Makarba, Ahmedabad-380051. The present Petition is filed through Shri Kanhaiya Lal Sharma, Authorised Signatory of the Applicant to initiate Corporate Insolvency Resolution process with respect to the Corporate Debtor. 3. It is submitted that the Respondent Company, Garden Silk....

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....It is stated that there is pre-existing dispute, which was intimated by the Respondent Company to the Operational Creditor vide Email dated 15.05.2019 (page 72 and 73 of the Additional Affidavit of the Petitioner). Said dispute dated 15.05.2019 stands prior to the issue of Demand Notice dated 25.09.2019 (Annexure-D page 50 to 52 of the petition). Said dispute stands asserted by several communications/emails exchanged by and between the Petitioner and the Respondent Company (Annexure-H page 58 to 59 of the petition, Annexure-J page 64 to 72 of the Additional Affidavit and typed copy of Emails at Annexure-R/2 to R/6 of the reply). 6.1.3 With reference to Sr. No. 1 of Clause No. 8 of Part V containing 'List of Other Documents' read wi....

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....livery was caused on account of any action at the end of the Petitioner. 9. It was further submitted by the Petitioner that the goods were handed over to the Petitioner in sealed condition by the Respondent and same was also delivered in sealed condition at the port. The Petitioner has also stated that it is still the stand of the Respondent that any theft was caused at the end of the Petitioner, it is open to the Respondent to proceed against the Petitioner legally and till filing of the application, no suit, criminal complaint or legal dispute has been raised by the Respondent. 10. It is submitted by the Petitioner that the Respondent has informed him vide Email dated 25.06.2019 that Insurance claim was pending and once the same was set....

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.... the information utility. It is clear that such notice must bring to the notice of the Operational Creditor the "existence" of a dispute or the fact that a suit or arbitration proceeding relating to a dispute is pending between the parties. Therefore, all that the Adjudicating Authority is to see at this stage is whether there is a plausible contention which requires further investigation and that the "dispute" is not a patently feeble legal argument or on assertion of fact unsupported by evidence. It is important to separate the grain from the chaff and to reject a spurious defence which is mere bluster. However, in doing so, the Court does not need to be satisfied that the defence is likely to succeed. The Court does not at this stage exa....