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TMI Blog2020 (10) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... s right to file an application under Section 9 of the Insolvency and Bankruptcy, Code, 2016. In this case no reply to the demand notice was sent by the corporate-debtor. Therefore, corporate-debtor has failed to raise any 'existence of disputes' and show that the operational-debt raised by the operational-creditor has already been paid. So under such circumstances, there are no option, but to pass the order under Section 9(5) (i) if the application is complete and from the perusal of the application, we find that the application is complete and there is no payment of unpaid operational-debt and no notice of dispute has been raised by the operational-creditor or there is no record of dispute in the information utility and the oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute raised by the corporate-debtor. 7. We have heard the learned counsel appearing on behalf of the applicant. Learned counsel appearing on behalf of the respondent has submitted that he has got no instructions and he is withdrawing his vakalatnama . 8. In the light of the submissions, we have gone the through the records and from the perusal of the records, we find that several opportunities was earlier given to the respondents, but no reply is filed on behalf of the respondent and vide order dated 10th January, 2019 right to file reply on behalf of the respondent was closed and again the case was adjourned on 13.02.2020, and then on today, so, considering these facts, we do not think, it proper to adjourn the case because the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy Code, 2016 and same are quoted below. Section: 8. Insolvency resolution by operational creditor An operational creditor may, on the occurrence of a default, deliver a demand notice of unpaid operational debtor copy of an invoice demanding payment of the amount involved in the default to the corporate debtor in such form and manner as may be prescribed. (2) The corporate debtor shall, within a period of ten days of the receipt of the demand notice or copy of the invoice mentioned in sub-section (1) bring to the notice of the operational creditor - (a) Existence of a dispute, 1[if any, or] record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there is no notice given by the corporate debtor relating to a dispute of the unpaid operational debt; (c) a copy of the certificate from the financial institutions maintaining accounts of the operational creditor confirming that there is no payment of an unpaid operational debt 1[by the corporate debtor, if available;] 2[(d) a copy of any record with information utility confirming that there is no payment of an unpaid operational debt by the corporate debtor, if available; and (e) Any other proof confirming that there is no payment of any unpaid operational debt by the corporate debtor or such other information, as may be prescribed.) (4) An operational creditor initiating a corporate insolvency resolution process u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , shall before rejecting an application under sub-clause (a) of clause (ii) give a notice to the applicant to rectify the defect in his application within seven days of the date of receipt of such notice from the Adjudicating Authority. (6) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (5) of this section. 13. From the perusal of the aforesaid provisions, we find that corporate-debtor after the receipt of the demand notice is required to raise the dispute within ten days from the receipt of demand notice or show the documents that the payment of the unpaid operational-debt has already been made. And if the corporate-debtor fails to raise the 'existence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (2) The supply of essential goods o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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