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ARTICLE · 20 MARCH 2020

Decrypting "Dispute" Under The Corporate Insolvency Resolution Process

S&A Law Offices
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The word "Dispute" is significant for the maintainability of every application filed under Section 9 of the IB Code.

IndiaInsolvency/Bankruptcy/Re-Structuring

Overview

The word "Dispute" is significant for the maintainability of every application filed under Section 9 of the IB Code. It will be not wrong to say that the first acid test for admission of an application under Section 9 is prima facie "whether there is any dispute or otherwise."

It is apposite to refer to Section 9(5) of IB Code which reads as below:

Section 9 (5) "The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), by an order—

(i) XXXX

(ii) Reject the application and communicate such decision to the operational creditor and the corporate debtor, if—

(a) The application made under sub-section (2) is incomplete;

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