Rejection of application u/s 9 without pre-existing dispute is erroneous

Jangsher Singh Choudhary Vs Ram Kripal Singh Construction Pvt. Ltd. (NCLAT Delhi)

Held that there was no dispute on the date of filing of the application u/s. 9 of the IBC nor at the stage of notice u/s. 8 of the IBC any dispute was raised. Thus, NCLT has committed error in outrightly rejecting the application under Section 9 of the IBC.

Facts-

The present Appeal has been preferred u/s. 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order dated 26.02.2020 passed by the National Company Law Tribunal, Kolkata Bench (NCLT). By the said order NCLT has rejected the petition filed u/s. 9 of the IBC on behalf of Appellant for initiating Corporate Insolvency Resolution Process (CIRP). NCLT dismissed the petition filed u/s. 9 of the IBC primarily on the ground that there was pre-existing dispute.

Conclusion-

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