AI Structured Summary
Not yet generated for this judgment
Judgment
Heard Learned Counsel for the Appellant.
This Appeal has been filed against the Order dated 03.02.2023 passed by the Adjudicating Authority by which Section 9 Application filed by the Appellant has been dismissed. The Adjudicating Authority has dismissed Section 9 Application on the ground that there is a pre-existing dispute with the Corporate Debtor.
The Adjudicating Authority has noticed that Commercial Suit No. 232/2017 was filed in the High Court of Bombay by the Appellant. Learned Counsel for the Appellant challenging the Order contends that suit was filed for the recovery of the dues and that cannot be treated to be any pre-existing dispute. He has further referred to Letter dated 30th June, 2016 issued by the Corporate Debtor to the Operational Creditor where it is submitted that there is an acknowledgement of dues of the Appellant to the extent of Rs. 21 Lakhs.
We have considered the submissions of Learned Counsel for the Appellant and perused the record.
The Appellant had filed the Commercial Suit on 19.12.2016 in the Bombay High Court and Demand Notice was issued on 22.10.2018. Demand Notice was replied by the Corporate Debtor disputing the claim and when Section 9 Application was filed, detail reply was filed by the Corporate Debtor. Copy of the Reply filed by the Corporate Debtor in Section 9 Application has been brought on record by the Appellant as Annexure A-3. In paragraph 7 of the Reply under the heading “Pre-Existing Dispute prior to Demand Notice dated 22.10.2018”, the Corporate has given the sequence of the events and details including the termination of work order and giving of the fresh work orders. Further details of dispute between the parties have been mentioned including the letter dated 30th June, 2016 which has been relied on by Learned Counsel for the Appellant.
There being dispute between the parties as detailed in paragraph 7 of the Reply and the Commercial Suit No. 232 of 2016 in the High Court of Bombay, we are of the view that Adjudicating Authority did not commit any error in rejecting Section 9 Application on the pre-existing dispute. No ground is made out to entertain the appeal, the Appeal is dismissed.