2020 (10) TMI 867

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... (in short, I&B Code) against M/s. Akansha Hair & Skin Care Herbal Unit Pvt. Ltd.- Corporate Debtor to start Corporate Insolvency Resolution Process (in short, CIRP) of the Corporate Debtor on a ground that the Corporate Debtor committed default in paying the operational debt of Rs. 9,26,600/-. 2. The Operational Creditor states that for the period in between 01/10/2018 to 31/01/2019, he has rendered legal services to the corporate debtor in various ways and raised invoices of Rs. 9,26,600/-. He asked the corporate debtor to pay the fees but the corporate debtor did not pay. Hence, on 27.02.2019, he sent the corporate debtor demand notice under section 8 of IBC. Notice is delivered to the corporate debtor. The corporate debtor replied no....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....usa Software Private Ltd., the Hon'ble Supreme Court explained the law relating to the 'pre-existing dispute' in 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 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 a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arding the amount claimed towards operational debt. 10. Not only that the corporate debtor brought to our notice that it has filed police complaint against the operational creditor on 07.02.2019, i.e. much prior to the operational creditor's demand notice dated 27.02.2019. In the complaint, it is alleged that the operational creditor has withheld some of very vital and important documents of the corporate debtor, say as books of accounts, daily account files, IT files, VAT file, GST file, 2001 onwards, Bank statement files, TDS files, Digital signature files, etc. It appears that due to intervention of police, the operational creditor returned some of documents only. Hence, the corporate debtor filed the complaint against operational....