Corporate Debtor failed to repay operational dues, leading to a ...

Operational Creditor's Section 9 Petition Rejected Due to Pre-Existing Disputes, Corporate Debtor Released from CIRP.

Case Laws IBC

November 12, 2024

Corporate Debtor failed to repay operational dues, leading to a Section 9 application by the Operational Creditor. However, pre-existing disputes were evident from the Notice of Disputes, fulfilling Section 8(2)(1)(a) requirements. The defense raised cannot be deemed spurious or illusory. For such disputed operational debt, Section 9 proceedings cannot be initiated. The Adjudicating Authority erred in admitting the Section 9 application, disregarding the Notice of Disputes. The reliance on Naresh Sevantilal Shah judgment was misplaced due to distinguishable facts. The Impugned Order initiating CIRP and subsequent orders were set aside, releasing the Corporate Debtor from CIRP with immediate effect. The appeal was allowed.

View Source

← Previous Next →

Corporate Debtor failed to repay operational dues, leading to a ...

Operational Creditor's Section 9 Petition Rejected Due to Pre-Existing Disputes, Corporate Debtor Released from CIRP.

Case Laws IBC

November 12, 2024

You may also like:

The NCLAT held that the corporate debtor failed to substantiate a pre-existing dispute with the operational creditor regarding the unpaid operational debt. The corporate...

CIRP - Rejection of Section 9 Application on the ground of pre-existing dispute - The dispute stemmed from services provided by the Operational Creditor to the Corporate...

Corporate Debtor failed to repay operational debt of rent to Operational Creditor as per lease deed. Operational Creditor consistently pressed for outstanding dues...

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...

Initiation of CIRP - existence of debt and pre-existing dispute or not - When no action is initiated in respect of the said mismanagement, projecting the mismanagement...

Admission of section 9 application - initiation of CIRP - pre-existing disputes or not - he National Company Law Appellate Tribunal (NCLAT) found ample evidence of a...

Initiation of CIRP - existence of genuine pre-existing dispute - From the email of 29.04.2018, it is clear that the Corporate Debtor gave opportunities to the...

Corporate insolvency process - Corporate Debtor has failed to demonstrate that there was a pre-existing dispute in regard to quality and standard of goods supplied by...

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

Initiation of CIRP - Failure to pay outstanding salary dues to the employees - Operational Creditor has not received his dues from the Corporate Debtor and the...

Existence of pre-existing dispute or not - Applicability of provision of Sales of Goods Act, 1930 - The delivery of the goods and the acceptance of the goods by use of...

Initiation of CIRP - Corporate Debtor failed to make repayment of its dues - pre-existing dispute or not - the disputed invoices were rightly sent to the respondent -...

The National Company Law Appellate Tribunal, New Delhi, addressed the admissibility of a section 9 application for initiation of Corporate Insolvency Resolution Process...

Rejection of section 9 application - pre-existing dispute - The Adjudicating Authority did not commit any error in holding that there is a pre-existing dispute. When the...

The Adjudicating Authority rightly dismissed the Company Petition filed u/s 9 of the Insolvency and Bankruptcy Code (IBC) on the ground of pre-existing disputes between...

Quick Updates: