Under IBC, dispute must be specific with regard to the same amount – Shri Balaji Paper Pack Pvt. Ltd. Vs. Laxmi Crockery (Pune) Pvt. Ltd. – NCLAT New Delhi

The Respondent has not raised any dispute with regard to the very same claim amount prior to issuance of demand notice dated 23.07.2019. Further, in the reply, even the Respondent has not raised invoices on the Appellant for the goods supplied (if any). Having failed to raise any invoices on the Appellant by the Respondent, claiming any dues from the Appellant, the question of set off, the claim between the Appellant and the Respondent does not arise. NCLAT held that the averments made in the reply by the Respondent is clearly an afterthought only for the purpose of vitiating the proceedings. Further, as per Section 8(2)(a) of the Code, 2016, the existence of dispute, if any or, record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such dispute. As per the above position of law the dispute must be specific with regard to the same amount. In that present case, the Respondent failed to raise any dispute prior to issue of demand notice and claim of set off is only an afterthought as stated (supra).

Under IBC, dispute must be specific with regard to the same amount – Shri Balaji Paper Pack Pvt. Ltd. Vs. Laxmi Crockery (Pune) Pvt. Ltd. – NCLAT New Delhi Read Post »