If Corporate Debtor admitted the outstanding debt and agreed to pay to Operational Creditor after raising dispute in reply of demand notice u/s 8 of IBC, CIRP u/s 9 of IBC can be admitted – Naresh Choudhary (Suspended Director of NIK-SAN Engineering Company Ltd.) Vs. Sterling Enamelled Wires Pvt. Ltd. – NCLAT New Delhi
NCLAT observed that the Corporate Debtor had acknowledged the outstanding amount which was due and payable to the Operational Creditor. Not only was the outstanding amount acknowledged but an assurance had also been given by Corporate Debtor to clear the said amount and make extra payment towards old outstanding dues. Letters of dispute had been raised by the Corporate Debtor on several occasions. Since these letters pertain to the period June 2020 to September 2020, there is no dispute that these pertain to a period prior to the date of demand notice. Subsequent to these communications, the Corporate Debtor has acknowledged his liability on 23.07.2021. At the time of acknowledging the outstanding operational debt, the question of any pre-existing dispute having subsisted lacks foundation.
