Maintainability of application u/s 9 of IBC, 2016 for ...

Manpower supply dues can't trigger IBC if pre-existing dispute, bonafide objection over services existed.

September 20, 2024

Case Laws IBC AT

Maintainability of application u/s 9 of IBC, 2016 for non-payment of dues arising from supply of manpower services hinges on existence of pre-existing dispute between parties. Emails prior to demand notice evidenced Corporate Debtor's concerns regarding adequacy of services, manpower shortages and security lapses, constituting pre-existing dispute. As per Mobilox case, if notice of dispute received by Operational Creditor or record of dispute exists, application must be rejected u/s 9(5)(2)(d). Corporate Debtor raised plausible contention of pre-existing dispute, not a feeble legal argument. Given bonafide dispute's existence, Adjudicating Authority correctly rejected Section 9 application. Appeal against impugned order dismissed.

View Source

← Previous Next →

Maintainability of application u/s 9 of IBC, 2016 for ...

Manpower supply dues can't trigger IBC if pre-existing dispute, bonafide objection over services existed.

September 20, 2024

Case Laws IBC AT

You may also like:

NCLAT upheld dismissal of Section 9 IBC application concerning outstanding payment dispute between parties. WhatsApp communications evidenced pre-existing dispute...

NCLAT allowed the appeal and set aside Section 9 proceedings under IBC against the Corporate Debtor. The tribunal found a pre-existing dispute between parties involving...

The Appellate Tribunal upheld the Adjudicating Authority's rejection of the Section 9 application filed by the Operational Creditor. The key points are: The Operational...

Pre-existing dispute regarding machine's performance and delayed delivery existed before demand notice. Respondent provided evidence of documented communication with...

Existence of pre-existing dispute or not - Applicability of provision of Sales of Goods Act, 1930 - The delivery of the goods and the acceptance of the goods by use of...

Rejection of Section 9 application - Initiation of CIRP - pre-existing dispute - The tribunal meticulously analyzed the arguments from both sides and relevant legal...

Initiation of CIRP - existence of debt and pre-existing dispute or not - When no action is initiated in respect of the said mismanagement, projecting the mismanagement...

Initiation of CIRP - Corporate Debtor failed to make repayment of its dues - pre-existing dispute or not - the disputed invoices were rightly sent to the respondent -...

Initiation of CIRP - pre-existing dispute or not - NCLT admitted the application - the Appellant, in the written submissions filed before the Adjudicating Authority has...

The Adjudicating Authority rightly rejected the petition filed u/s 9 of the Code due to a pre-existing dispute between the parties. The Corporate Debtor raised a...

Pre-existing dispute between parties regarding inflated invoices issued by appellant's staff/employees for different project under same Master Service Agreement....

The National Company Law Appellate Tribunal, New Delhi, addressed the admissibility of a section 9 application for initiation of Corporate Insolvency Resolution Process...

Rejection of section 9 application - pre-existing dispute - The Adjudicating Authority did not commit any error in holding that there is a pre-existing dispute. When the...

Initiation of CIRP - existence of genuine pre-existing dispute - From the email of 29.04.2018, it is clear that the Corporate Debtor gave opportunities to the...

Rejection of Section 9 application - CIRP - cyber fraud committed against the Respondent - pre-existing disputes or not - While a cyber fraud occurred, the Tribunal...

Quick Updates: