Corporate Debtor failed to repay operational debt of rent to ...

CIRP: Corporate Debtor defaulted on undisputed operational debt of rent. Legal notice post Section 9 application can't establish pre-existing dispute.

Case Laws Insolvency and Bankruptcy

July 8, 2024

Corporate Debtor failed to repay operational debt of rent to Operational Creditor as per lease deed. Operational Creditor consistently pressed for outstanding dues without objection from Corporate Debtor prior to Section 8 notice. Rent for business premises qualifies as operational debt under IBC. Corporate Debtor's contention of Operational Creditor's omission not tenable. Legal notice post Section 9 application cannot establish pre-existing dispute. Mediation application and civil suits do not constitute pre-existing disputes. Corporate Debtor defaulted on undisputed operational debt exceeding threshold. No error by Adjudicating Authority in admitting Section 9 application and initiating CIRP. Interim stay on CIRP vacated. Appeal dismissed.

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Corporate Debtor failed to repay operational debt of rent to ...

CIRP: Corporate Debtor defaulted on undisputed operational debt of rent. Legal notice post Section 9 application can't establish pre-existing dispute.

Case Laws Insolvency and Bankruptcy

July 8, 2024

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