Defences Of ‘Pre-Existing Dispute’ Or ‘No Amount Due’ Can Be Raised Directly In Reply To Section 9 Application: NCLAT Delhi
The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan and Ms. Shreesha Merla, while adjudicating an appeal filed in Greymatter Entertainment Pvt. Ltd., has held that IBC does not prevent the Corporate Debtor from establishing defences of ‘Pre-existing dispute’ or ‘No amount due’ through its Reply to Section 9 application and supporting documents, even if it failed to respond to the Section 8 Demand Notice within 10 days of receipt. On 20.09.2018 the Operational Creditor issued a Demand Notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 to the ‘Corporate Debtor’, claiming a sum of Rs. NCLAT Verdict The Bench observed that Section 8 & 9 of IBC indicate that in event Reply to Demand Notice has not been filed within 10 days, the Corporate Debtor is precluded from raising the question of dispute or pleading that there or no amount due and payable. 958/2020, wherein it was held: “We thus are of the considered opinion that mere fact that Reply to notice under Section 8 having not been given within 10 days or no reply to demand notice having been filed by the Corporate Debtor does not preclude the Corporate Debtor to bring relevant materials before the Adjudicating Authority to establish that there are preexisting dispute which may lead to the rejection of Section 9 application.” The Bench held that the dispute raised by the Corporate Debtor in its Reply to Section 9 application were not spurious in nature.
![IBC Weekly Round-Up [17th February-23rd February 2025]](/static/images/error.jpg)
Discover Related
NCLAT allows banks to proceed against former IL&FS directors not part of new board
NCLAT dismisses IDBI Banks plea for insolvency against Zee Entertainment
IBC | Difference Between 'Avoidance Transactions' & 'Fraudulent Or Wrongful Trading' : Supreme Court Explains
Finance clearance must for all spending: Delhi government
Sebi's PaRRVA to verify risk-return metrics claims of IAs, algo providers
NCLAT rejects Busy Bee’s plea against Go First liquidation
Supreme Court upholds Piramal’s resolution plan for DHFL, grants it proceeds of funds recovered
NCLT issues notice to Shapoorji Pallonji Group over insolvency plea
Sebi chief warns against "sledgehammer" regulation in complex F&O market
SC slams NCLAT for ignoring precedent, calls move ‘perverse’
IBC Cases Weekly Round Up [17th March-23rd March 2025]
Six entities pay ₹4.14 crore to settle FPI rule violation case with Sebi
Six entities pay ₹4.14 crore to settle FPI rule violation case with Sebi
IBBI asks resolution professionals to be more open about losses carried forward
Zomato stock price zooms 6% today despite reports of insolvency plea
LDA files ₹4,500-cr claim against Ansal API in NCLT