Adjudicating Authority in an application u/s 9 as it cannot decide the claim or counter claim being not Court of competent jurisdiction. It is required to be seen that prior to issuance of demand notice u/s 8(1) is there any dispute- Suman Chakraborty Vs. Anhui Technology Imp. & Exp. Co. Ltd. – NCLAT New Delhi

NCLAT held that in the present case there being a pre-existing dispute relating to quality of product supplied by the Operational Creditor referred in the email dated 30th September, 2016, the Adjudicating Authority without deciding the issue whether it was accepted to pay the amount or not is not competent to admit application under Section 9, there being a pre-existing dispute. For the reason aforesaid NCLAT set aside the NCLT's order.

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