TDS deduction does not imply acknowledgment of any liability as outstanding qua the Operational Creditor – R S Infra v. R P Infraventure Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that: (i) Post issue of demand notice by the Operational Creditor, if the Operational Creditor does not receive payment from the Corporate Debtor or notice of the dispute, he may file an Application under Section 9(1) of the Code. (ii) TDS deduction does not imply acknowledgment of any liability as outstanding qua the Operational Creditor. (iii) The WhatsApp message of 20.07.2020 relating to debit notes from the Corporate Debtor to the Operational Creditor has been placed at page 133 of APB. That this message was received by them from the Corporate Debtor has not been controverted by the Operational Creditor. (iv) It is well settled that in Section 9 proceeding, there is no need to enter into final adjudication with regard to existence of dispute between the parties regarding operational debt.

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