Even if no reply to Demand Notice was given, it would have not precluded Corporate debtor to bring immediately before Adjudicating Authority to establish a pre-existing dispute – Mr. Sanjay Kumar Vs. Gannon Dunkerley and Co Ltd. and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that if the dispute is raised by the CD and if the CD shows the disputed issues of facts which require adjudication by a competent court of law, then Section 9 of IBC would not empower the Adjudicating Authority to take upon itself the task of sifting through the rival contentions raised and to gave a judgement upon it. However, it has to determine whether there truly exist a dispute which may or may not ultimately succeed, but at the stage of consideration of an application under Section 9 IBC the jurisdiction is limited to consideration of existence of a dispute.

Even if no reply to Demand Notice was given, it would have not precluded Corporate debtor to bring immediately before Adjudicating Authority to establish a pre-existing dispute – Mr. Sanjay Kumar Vs. Gannon Dunkerley and Co Ltd. and Ors. – NCLAT New Delhi Read Post »