Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 883 - AT - Insolvency and BankruptcyCorporate insolvency process - Outstanding dues - per-existing dues - Respondent issued one legal notice under Section 433 (e) and 434 of the Companies Act, 1956, by letter asking the ‘Corporate Debtor’ to pay the dues - ‘Corporate Debtor’ by its legal reply dated 9th November, 2016, raised dispute relating to late supply of raw material and the poor quality of products and made counter claim - HELD THAT:- It is not denied that the dispute relating to quality of raw material and loss was raised by the ‘Corporate Debtor’ on 9th November, 2016 i.e. much prior to the issuance of the demand notice dated 18th March, 2017 issued under Section 8(1). In the aforesaid background, as we find that there is pre-existence dispute prior to the issuance of the demand notice under Section 8(1), we hold that the application under Section 9 of the ‘I&B Code’ preferred by the Respondent was not maintainable. The impugned order dated 22nd August, 2017 is accordingly set aside. Adjudicating Authority appointing any ‘Interim Resolution Professional’, declaring moratorium, freezing of account, and all other order (s) passed by the Adjudicating Authority pursuant to impugned order and action, if any, taken by the ‘Interim Resolution Professional’, including the advertisement published in the newspaper calling for applications all such orders and actions are declared illegal and are set aside.
|