When There Is No Privity Of Contract Between Operational Creditor And Corporate Debtor, Application U/S 9 Of IBC Cannot Be Admitted: NCLAT
The National Company Law Appellate Tribunal New Delhi bench of Justice Ashok Bhushan, Mr. Arun Baroka and Mr. Barun Mitra has held that an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, cannot be admitted when there is no privity of contract between the Operational Creditor and the Corporate Debtor. Lastly, it was submitted that the Appellant does not fall in the category of Operational Creditor of the Corporate Debtor as per the definition provided under Section 5 r/w 3 of the Code. The Tribunal noted that initially, the Appellant issued the demand notice under section 8 of the code to the EPC Thermal which was later withdrawn. The Tribunal further said that the Adjudicating Authority rightly held that there was no privity of contract between the Appellant and the Respondent as invoices and work orders were linked to Hindustan Thermal EPC.
Discover Related
NCLAT dismisses IDBI Banks plea for insolvency against Zee Entertainment
NCLT dismisses insolvency plea against Zomato over alleged payment default
Supreme Court sets aside NCLAT order on DHFL resolution plan dispute
Members Can File Consumer Complaint Against Their Co-operative Society: NCDRC
IBBI asks resolution professionals to be more open about losses carried forward