2019 (8) TMI 1588

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....solvency and Bankruptcy Code, 2016 (hereinafter referred to as IB Code, 2016) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s. Srinagar Banihal Expressway Limited (hereinafter referred to as 'Respondent/Corporate Debtor'). 2. Brief facts of the present case are as follows: a. That the Operational Creditor is micro category company defined under the MSME development Act, 2006 and that the Corporate Debtor is a special purpose vehicle Company incorporated for execution of the project that is rehabilitation, strengthening and four laning of Srinagar to Banihal section in the state of J&K. b. That in the year 2014, an engagement letter dated 21.11.201....

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.... dispute to the claim of the Operational Creditor. 3. The Respondent filed its counter. The learned counsel for the respondent stated as under; a. That the petitioner has categorically stated in the present petition that on 27.07.2018, it has approached the Delhi MSME facilitation council for the same cause of action and the same is pending for adjudication by the MSME council. b. That the Corporate Debtor vide its letter dated 22.02.2019, was instructed by the MSME council to conciliate the alleged dispute with the Operational Creditor and that the Corporate Debtor vide its reply dated 04.03.2019, and refuted all the allegations made by the Operational Creditor. c. That the MSME council has seized of the prese....

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....ng Authority, it is observed that the Petitioner themselves in the petition has stated that the subject matter has already been taken to the MSME facilitation council for redressal in terms of MSME Development Act, 2016 and Arbitration proceedings between the Operational Creditor and Corporate Debtor have been commenced with the failure of conciliation between the parties as per section 18(3) of the MSME Development Act, 2006. Furthermore, the Corporate Debtor has also sent a reply on 07.02.2019, to the demand notice dated 21.01.2019, sent by the Operational Creditor raising the pre-existing dispute with regards to the amount claimed to the demand notice. This Adjudicating Authority has already held that the pendency of the Application befo....