The Tax Publishers 2020 TaxPub(CL) 1108 (NCLAT-Del)

INSOLVENCY AND BANKRUPTCY CODE, 2016,

Section 9, 5(6) & 61

Where dispute in regard to quality of goods not matching specification of franchiser was raised by corporate debtor for first time in its reply to demand notice, application filed by operational creditor for initiating corporate insolvency resolution process against corporate debtor was rightly admitted.

Initiation of corporate insolvency resolution process against corporate debtor - Non-repayment of dues - Pre-existing dispute regarding quality of goods or not - Maintainability of appeal

Operational Creditor (OC) supplied cables to Corporate Debtor (CD) against purchase orders raised by CD. CD failed to make payment of operational debt; therefore, OC filed an application under section 9 to initiate Corporate Insolvency Resolution Process (CIRP) against CD. NCLT admitted said application. CD filed an appeal under section 61 on ground that there was pre-existing dispute between parties regarding quality of goods not matching specification of franchiser. Held: It was observed that dispute in regard to quality of goods not matching the specification of franchiser, was for the first time raised by CD in its reply to the demand notice, which justified the conclusion that defence raised was an after-thought and spurious. The operational debt being due and payable stood admitted and acknowledged and the amount in default exceeded the prescribed limit of rupees one lakh, therefore, appeal filed by CD was dismissed.

REFERRED :

FAVOUR : Against the appellant

A.Y. :



IN THE NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com