Dispute raised in reply of Notice under section 138 of the Negotiable Instrument Act, 1881 will be considered as “existence of dispute” under IBC – NCLAT in case of A.D. Electro Steel Co. Pvt. Ltd. & Anr. Vs. Anil Steels (Operational Creditor)
NCLAT held that from the record it is found that the Respondent-Operational Creditor through Advocate issued notice dated 15th June, 2016 under section 138 of the Negotiable Instrument Act, 1881 and made certain claims. In reply to the same, learned counsel for the Appellants- Corporate Debtor by reply dated 28th June, 2016 raised the dispute about the supply of certain quantities of Buffer Plunger (Wagon) Casting and Buffer Casing (Wagon) Casting. It was also alleged that the terms and conditions of the agreement have been violated. In the present case, it is found that there was an “existence of dispute” between the parties. Learned Counsel for the Respondent-Operational Creditor while did not dispute the aforesaid fact and submits that the amount due to the Operational Creditor have already been paid.