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Judgment
Heard Learned Counsel for the Appellant.
This Appeal has been filed against the Order dated 06th April, 2022 by which the Adjudicating Authority has admitted the Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC in short) by the Respondent-Operational Creditor.
The Adjudicating Authority has returned a finding that ‘debt and default’ is proved and further held that Balance Sheets and the authenticated ledger accounts of the Corporate Debtor clearly reflect uncleared debt of more than Rs. 1 Lakh the then threshold limit for initiation of CIRP under IBC, 2016.
Learned Counsel for the Appellant submits that notice, invoking MOU to arbitration clause was issued on 17.11.2013 by the Appellant hence it suggests that there was pre-existing dispute. On a pointed query, Learned Counsel for the Appellant submits that although notice was issued in 2013 but no arbitration proceeding was instituted thereafter. The Notice under Section 8 of the IBC was issued in the year 2019 i.e. more than 6 years thereafter.
We are not in agreement with the submissions that notice of invocation itself proves the pre-existing dispute when no further steps were taken in pursuance of the said notice for six years.
We are of the view that ‘debt and default’ having been proved, no error was committed by the Adjudicating Authority in admitting the Application under Section 9 of the IBC. The Appeal is dismissed.