The mere fact that notice of arbitration was replied by Operational Creditor stating that there is no pre-existing dispute cannot be reason to ignore the dispute – NTT Data Business Solutions Pvt. Ltd. Vs. Trident Ltd. – NCLAT New Delhi
In this case, a notice under Section 21 of Arbitration and Conciliation Act, 1996 was given to the Operational Creditor dated 14.06.2021. The Corporate Debtor invoked arbitration clauses and appointed an Arbitrator. The notice of arbitration was replied stating that there is no dispute between the parties. The Appellant thereafter gave a notice under Section 8 of the IBC, 2016 on 21.06.2021 and thereafter filed Section 9 Application. The Adjudicating Authority rejected the application holding that there is a pre-existing dispute between the parties.
NCLAT affirmed the decision holding that the mere fact that notice of arbitration was replied by Operational Creditor stating that there is no pre-existing dispute cannot be reason to ignore the dispute as was raised in the notice dated 14th June, 2021 which is elaborate and details the deficiency in service as per the Corporate Debtor.