Legal Notice sent by Corporate Debtor prior to Demand Notice u/s 8 of IBC, pointing out bribe paid by Operational Creditor to employees of Corporate Debtor should be considered as a genuine pre-existing dispute which cannot be resolved in Sec. 9 summary proceedings – Paras Sales Corporation Vs. OC Specialities Pvt. Ltd. – NCLT Mumbai Bench

In Sec. 9 application, prior to demand notice issued by Operational Creditor, Corporate Debtor sent a legal notice to Operational Creditor pointing out that a sum of Rs. 4.30 lakhs had been paid to employees of Corporate Debtor as bribe. NCLT Mumbai Bench held that: (i) It is well settled that at the stage of admission, merits of the pre-existing dispute have not to be gone into. It is only to be seen that the dispute raised is not something spurious or moon shine. (ii) The dispute that some bribes were paid on behalf of the Operational Creditor to the employees working in the purchase department of the Corporate Debtor should be considered as a genuine pre-existing dispute which cannot be resolved in summary proceedings and are supposed to be tried by a competent court by recording evidence in detail. (iii) Dismissed the application filed u/s 9 of IBC.

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