Rejection of Section 9 application - CIRP - cyber fraud ...

Tribunal Denies CIRP Application; Cyber Fraud Not a Pre-Existing Dispute, Debt Remains Undisputed and Unpaid.

May 14, 2024

Case Laws     Insolvency and Bankruptcy     AT

Rejection of Section 9 application - CIRP - cyber fraud committed against the Respondent - pre-existing disputes or not - While a cyber fraud occurred, the Tribunal noted that it did not necessarily constitute a pre-existing dispute between the parties. The fraud was committed by unknown third parties, as per the respondent's own admission in their police complaint. The Tribunal concluded that the fraud and subsequent police complaint did not establish a dispute between the appellant and respondent. - The Tribunal affirmed that the debt was undisputed and unpaid, satisfying the criteria for initiating proceedings under Section 9 of the IBC.

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