The Tax Publishers 2019 TaxPub(CL) 0996 (NCLAT-Bang) : (2019) 154 SCL 0711

INSOLVENCY AND BANKRUPTCY CODE, 2016,

Section 9

Though corporate debtor already raised dispute before arbitration about work executed and pending work etc., done by operational creditor, which was pending for adjudication, therefore, petition under section 9 filed by operational creditor was dismissed.

Initiation of corporate insolvency resolution process by operational creditor - Petition against non-payment regarding completion of work - Pendency of dispute before arbitration regarding execution and pendency of work -

Operational creditor filed petition under section 9 against corporate debtor on the ground that it had completed work, which was assigned by the corporate debtor, but the corporate debtor had failed to pay outstanding amount. The corporate debtor raised objection that it had already raised dispute before arbitration about work executed and pending work etc., done by the operational creditor, which was pending. Held: It was found that the amount claimed by the operational creditor was not only disputed by the corporate debtor in its reply but the matter was also admittedly referred to the arbitration, which was pending for adjudication. Debt and default were already in dispute before arbitrator. Therefore, the petition was dismissed.

REFERRED : B.K. Educational Services (P.) Ltd. v. Parag Gupta and Associates (2018) 150 SCL 293 (SC) : 2018 TaxPub(CL) 1117 (SC)

FAVOUR : Against the petitioner

A.Y. :


INSOLVENCY AND BANKRUPTCY CODE, 2016

Section 238A

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