The case assesses the statutory construct of IBC regarding ...

Assessing IBC rules on demand notices, a payment dispute led to wrong CIRP initiation. NCLAT allows appeal, refunds fees.

August 8, 2024

Case Laws Insolvency and Bankruptcy AT

The case assesses the statutory construct of IBC regarding demand notices u/s 9. A dispute arose over payment to Respondent No. 2 by the Corporate Debtor, with a notice of dispute issued. The disputes, including changes in roles and responsibilities, impacted the debt claimed by Respondent No. 2. Pre-existing disputes surrounding the debt indicated it was not undisputed, making CIRP initiation inappropriate. The Adjudicating Authority erred by not considering the plausibility of disputes. The Section 9 application was wrongly admitted, leading to the release of the Corporate Debtor from CIRP. The Resolution Professional's fees are upheld, and the deposited amount is to be refunded. NCLAT allowed the appeal.

View Source

← Previous Next →

The case assesses the statutory construct of IBC regarding ...

Assessing IBC rules on demand notices, a payment dispute led to wrong CIRP initiation. NCLAT allows appeal, refunds fees.

August 8, 2024

Case Laws Insolvency and Bankruptcy AT

You may also like:

Initiation of CIRP - pre-existence of dispute - There was no dispute existing prior to the first demand notice and only disputes raised prior to the first demand notice...

Maintainability of petition seeking initiation of CIRP against Personal Guarantor/Respondent - invocation of Bank guarantee and time limitation - The case involved an...

Initiation of CIRP - pre-existing dispute or not - While admitting that the civil suit was filed subsequent to the issue of notice under Section 8 of IBC, it has been...

Jurisdiction of the Adjudicating Authority (NCLT) to adjudicate upon a closure notice issued prior to the initiation of the Corporate Insolvency Resolution Process...

Initiation of CIRP - NCLT admitted the application - Operational Creditors - The tone and tenor of these protracted correspondences clearly manifest existence of dispute...

Initiation of CIRP - Operational Creditors - pre-existence of dispute - The NCLT, exercising powers under Section 7 or Section 9 of IBC, is not a debt collection forum....

Ownership of leasehold rights over the subject plot - demand for enhanced land cost was raised much before initiation of CIRP - The tribunal held that the demand for...

Initiation of CIRP - Since Adjudicating Authority has not relied upon the “confirmation and undertaking” and has come to a conclusion that there is a debt and default...

Initiation of CIRP - Period of limitation - It is now well settled that the provisions of the Limitation Act are applicable to proceedings under the IBC as far as may be...

Initiation of CIRP - Claim beyond the period of limitation - The Adjudicating Authority, exercising powers under Section 7 or Section 9 of IBC, is not a Debt Collection...

The case pertains to the extinguishment of claims under the Insolvency and Bankruptcy Code (IBC) against Ruchi Soya Industries Limited, after the acceptance of the...

This case deals with the extinguishment of demands due to the non-filing of claims by the revenue during the Corporate Insolvency Resolution Process (CIRP) under the...

Initiation of CIRP - pre-existing dispute - the Adjudicating Authority has erred by not considering the various e-mails communication exchanged between the corporate...

Pre-existing dispute regarding machine's performance and delayed delivery existed before demand notice. Respondent provided evidence of documented communication with...

Service of notice - initiation of CIRP - in the present case, the Bill / Invoice was raised against, M/s Flywheel Logistics Private Limited, whereas the mandatory demand...

Quick Updates: