Thursday, April 27, 2017

Debtor can’t raise dispute on existence of debt to avoid initiation of insolvency process by creditor

Disputes raised by Debtor in reply to demand notice from operational creditor were not sustainable as corporate debtor didn’t raise any objection for disputing existence of debt against operational creditor before issuance of statutory notice under section 8 of the Insolvency and Bankruptcy Code, 2016.

Merely mentioning dispute in reply to the notice u/s 8 will not amount to dispute being in existence. Therefore, petition for initiation of Corporate Insolvency Resolution process by Operational Creditor was to be admitted - [2017] 80 taxmann.com 320 (NCLT - Mum.)
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