Key Points
MUMBAI: The Indore bench of the National Company Law Tribunal (NCLT) has rejected a petition filed by an operational creditor seeking to initiate bankruptcy proceedings against construction company Dilip Buildcon...
Countering this, the construction company argued that the application was not maintainable as there was already a dispute between the two sides over the claim raised by the applicant at the NCLT...
"The NCLT only adjudicates based on admitted dues and cannot be made to conduct the proceedings by way of a detailed trial to ascertain the amount of debt claimed," said Yogendra Aldak, partner at law firm Lakshmikumaran & Sridharan Attorneys..
"Hence, in cases of pre-existing disputes between an operational creditor and a corporate debtor, instead of approaching the NCLT, the operational creditor should choose other avenues including but not limited to civil suits or arbitration as the case may be."..
The supplier claimed that "the legal notice dated May 7, 2018, issued by the respondent (Dilip Buildcon) disputing the quality of the material is prior to the demand notice dated March 5, 2020, issued by the applicant", the bench presided over by judicial member P Mohan Raj and a technical member Kaushalendra Kumar Singh observed in its order last week...
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