Maintainability of application u/s 9 of IBC, 2016 for non-payment of dues arising from supply of...

Maintainability of application u/s 9 of IBC, 2016 for non-payment of dues arising from supply of manpower services hinges on existence of pre-existing dispute between parties. Emails prior to demand notice evidenced Corporate Debtor's concerns regarding adequacy of services, manpower shortages and security lapses, constituting pre-existing dispute. As per Mobilox case, if notice of dispute received by Operational Creditor or record of dispute exists, application must be rejected u/s 9(5)(2)(d). Corporate Debtor raised plausible contention of pre-existing dispute, not a feeble legal argument. Given bonafide dispute's existence, Adjudicating Authority correctly rejected Section 9 application. Appeal against impugned order dismissed. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X