NCLT Judgement on Section 8, 9, 9(5)(2)(d), 65 of the Insolvency And Bankruptcy Code, 2016 and Section 41A of the Code Of Criminal Procedure, 1973 (CrPC)
Freebie Solutions Private Ltd Vs. Zaggle Prepaid Ocean Services Private Limited, (2020) 08 NCLT CK 0033 NCLT dismissed the petition filed by the petitioner filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of Corporate Insolvency Resolution Process for an amount of Rs.10,28,69,811/-. The claim has been slashed to Rs.6,11,10,000/- by way of Affidavit dated 17.10.2019 for amendment, as dealt with during the course of the order. While dismissing the petition NCLT held that when there was a prior dispute between the parties, a petition under section 9 of the I&B Code cannot be admitted. Business transactions worth several hundreds of crores of rupees took place between the operational creditor and the corporate debtor. Therefore, the dispute raised by the corporate debtor cannot be said to be spurious, hypothetical or illusory. The next contention of the corporate debtor, in the alternative, is that the amount given as advance does not fall...