NCLAT dismissed appeal concerning operational creditor's Section ...

Corporate Debtor Can Contest Section 9 IBC Application Even After Not Responding to Section 8 Notice

February 17, 2025

Case Laws IBC AT

NCLAT dismissed appeal concerning operational creditor's Section 9 application under IBC. Court held that while Section 8 notice is mandatory prerequisite for filing Section 9 application, corporate debtor's failure to respond to Section 8 notice does not preclude them from contesting subsequent Section 9 proceedings. Operational creditor must deliver demand notice with invoice per Form 3, allowing corporate debtor 10 days to respond regarding disputes or prior payments. However, Section 8 and Section 9 serve distinct purposes - Section 8 establishes procedural requirement for operational creditor, while Section 9 provides corporate debtor full rights to defend against insolvency proceedings regardless of earlier response to Section 8 notice. Corporate debtor retains right to raise defenses during Section 9 proceedings despite non-reply to Section 8 notice.

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NCLAT dismissed appeal concerning operational creditor's Section ...

Corporate Debtor Can Contest Section 9 IBC Application Even After Not Responding to Section 8 Notice

February 17, 2025

Case Laws IBC AT

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