Leena Salot Vs Ridham Synthetics Private Limited (NCLAT Delhi)
NCLAT Delhi held that section 9 application under the Insolvency and Bankruptcy Code, 2016 cannot be rejected if undisputed portion of the debt is significantly above the minimum threshold limit of Rs. 1 Crore and the dispute pertains to a very relatively non-significant part of the claim.
Facts- The Appellant/Operational Creditor submitted that a Petition u/s. 9 of the Code, was filed for initiation of the Corporate Insolvency Resolution Process (“CIRP”) against the Respondent, on account of the Respondent’s failure to pay the outstanding operational debt amounting to Rs. 1,36,06,646.70.
Notably, as per the most recent ledger statement shared by the Respondent on 23rd June 2022, the outstanding liability has been duly admitted and acknowledged to the extent of Rs. 1,39,85,901.02. The Appellant submitted that, despite repeated follow-ups, the Respondent has failed to pay the outstanding balance. The Appellant issued a notice under the Arbitration and Conciliation Act, 1996 seeking recovery of the said dues. The Respondent, however, chose to ignore the said notice, failed to respond to the correspondence, and did not make any payment towards the admitted liability.
This present Appeal has been filed by the Appellant u/s. 61(1) of the Insolvency and Bankruptcy Code, 2016 against the Impugned Order dated 22.12.2023 passed by the National Company Law Tribunal, Mumbai Bench.
