Post by Aabid and Co

NCLT MUMBAI REJECTS SECTION 9 APPLICATION, HOLDS GENUINE PRE-EXISTING DISPUTE OVER PART OF OPERATIONAL DEBT BARS CIRP The Mumbai Bench of the National Company Law Tribunal (NCLT) held that the existence of a genuine pre-existing dispute raised prior to issuance of a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, is sufficient to defeat an application under Section 9, even where the dispute relates only to a part of the operational debt, unless the disputed amount is wholly insignificant. A Bench comprising Nilesh Sharma (Judicial Member) and Sameer Kakar (Technical Member) dismissed the application filed by Lumens Technologies Pvt. Ltd. seeking initiation of the Corporate Insolvency Resolution Process against Radhika Opto Electronics Ltd. in respect of an alleged operational debt of ₹4.43 crore.