NCLT admits insolvency petition for ₹1.05 crore operational debt; no genuine dispute raised prior to default.
NCLT Allows CIRP for Unpaid Operational Debt of ₹1.05 Crore
The National Company Law Tribunal (NCLT) admitted a corporate insolvency resolution process (CIRP) petition based on an operational debt of ₹1.05 crore owed to a service provider. The creditor submitted unpaid invoices and a demand notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), 2016. The corporate debtor failed to repay or raise any pre-existing dispute before the due date.
NCLT held that no substantial dispute existed, as the debtor had neither contested the invoices nor initiated any legal proceedings prior to the insolvency application. Mere denial after the fact does not constitute a “pre-existing dispute” under Section 8(2)(a) of the IBC. The tribunal relied on settled precedent that disputes must be genuine, recorded in writing, and raised before the default occurs.
This decision reaffirms the threshold for resisting CIRP on grounds of dispute. Operational creditors can proceed confidently when invoices remain uncontested during the contractual period. Debtors must proactively challenge claims; silence followed by blanket denial during CIRP proceedings will not suffice. The ruling streamlines admission standards under IBC and supports timely resolution.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 8
