The National Company Law Tribunal (NCLT) Mumbai bench of Hon’ble Shri K. R. Saji Kumar (Judicial Member) and Hon’ble Shri Sanjiv Dutt (Technical Member) has held that failure to respond to a demand notice within 10 days under Section 8 of the Insolvency and Bankruptcy Code, 2016 (the Code) does not bar the Corporate Debtor from asserting the existence of a pre-existing dispute especially when such dispute was raised before the issuance of the demand notice.
Brief Facts:
The default in the present case arises from five unpaid invoices for cotton fibre supplied to the Corporate Debtor during 2021-22. While the date of default is not expressly mentioned in Part 1V of the application, invoices dated 16 December 2021 to 19…
