2019 (1) TMI 1825

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.... registered office 53-54, Phase Il, RD-11, SV Co-operative Industrial Estate, Balanagar, Hyderabad - 500 037 against M/S. Vijay Home Appliances Limited (in short Respondent/ Corporate Debtor) , a company registered under the Companies Act, 1956 having its registered office at H. No. 8-3-191-14, Housing Board No. 5/ A, Vengalrao Nagar, Hyderabad - 500 038 under section 9 of the Insolvency and Bankruptcy Code, 2016 (in short 1B Code 2016) r/ w Rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 ( in short 1B Rules 2016). 2. Before proceeding with this matter, it would be appropriate to make a note of background facts for the purpose of determination of this petition. 3. The Petitioner and the Corpor....

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....pondent/ Corporate Debtor and prayed for an appointment of IRP to take over the affairs of the Respondent/ Corporate Debtor. 4. The Respondent/ Corporate Debtor filed a counter and the learned Counsel for the Corporate Debtor submitted that the submission of the petitioner that claim of interest falls within the terms of 'debt' is erroneous and the said question of law whether the claim of interest falls within the term of debt was decided by NCLT, Chandigarh Bench in the matter of M/S. Wanbury Limited Vs M/S. Panacea Biotech Limited and the said NCLT Bench held that there is marked difference between the definite of terms 'financial debt' and 'operational debt'. Under section 5(8) of the Code, the term 'finan....

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....ises Facilitation Councils (MSEFC) vide case No. TS09C0027873/00001, even before filing the present Petition and the same is pending before MSEFC. The said pending matter is deemed to be a pre existing dispute and in support of his submission he has relied on the judgment made by the Hon'ble Supreme Court in the matter of M/S. Mobilox Innovations Private Limited Vs Kirusa Software Private Limited wherein it is held that so long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the application of an operational creditor must be rejected by the NCLT. Therefore, the learned Counsel submitted that there is a pre existing dispute before MSEFC and the present application is not maintainable and prayed for dismis....