In IBC Section 9 proceeding, the Adjudicating Authority is not to enter into final adjudication with regard to existing of dispute between the parties regarding the Operational Debt – Ms. Manju Agarwal Vs. M/s. Shree Maru Tradelink Ltd. – NCLAT New Delhi

Section 9(5)(ii) contemplates that Adjudicating Authority shall reject the Application if notice of dispute has been received by the Operational Creditor or there is record of dispute in the Information Utility. The object and purpose of IBC is to reorganize and revive the Corporate Debtor. Section 9 Application is not contemplated to decide the dispute between the parties regarding the operational dues. It is well settled that in Section 9 Proceeding, the Adjudicating Authority is not to enter into final adjudication with regard to existing of dispute between the parties regarding the Operational Debt, what has to be looked into as to whether the defence raises a dispute which need further adjudication by competent court. The nature of dispute raised in Reply Notice required adjudication by Competent Court for finding out the validity of the claim of Operational Creditor.

In IBC Section 9 proceeding, the Adjudicating Authority is not to enter into final adjudication with regard to existing of dispute between the parties regarding the Operational Debt – Ms. Manju Agarwal Vs. M/s. Shree Maru Tradelink Ltd. – NCLAT New Delhi Read Post »