Section 9 Petition Is Not Maintainable If Affidavit Under Section 9(3)(B) Is Not Filed: NCLT Mumbai
Udai Yashvir Singh
13 May 2023 1:30 PM GMT
The National Company Law Tribunal, Mumbai Bench, comprising Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in M/s Welcome Steel vs Kavish International Trading Private Limited has held that Affidavit under Section 9(3)(b) of IBC, 2016...
The National Company Law Tribunal, Mumbai Bench, comprising Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in M/s Welcome Steel vs Kavish International Trading Private Limited has held that Affidavit under Section 9(3)(b) of IBC, 2016 is mandatory in nature and the same must be in relation to the notice of dispute with regard to receipt or non- receipt of the payments made by the Corporate Debtor
Background Facts
M/s Welcome Steel (“Operational Creditor”) supplied goods to Kavish International Trading Private Limited (“Corporate Debtor”) from 20.07.2018 to 07.06.2019 and various invoices were raised against the same. Although part payments were made against the invoices, there was an alleged total outstanding amount of Rs.2,21,02,450 with the date of default being 07.06.2019. A Demand Notice dated 26.04.2021 was issued by the Operational Creditor when the outstanding amount was not repaid by the Corporate Debtor.
The Corporate Debtor failed to appear in the matter and was declared ex-parte.
Findings of the Tribunal
The Tribunal observed that the Operational Creditor had not filed Affidavit under Section 9 (3) (b) of IBC, 2016 stating that there is no notice given by the Corporate Debtor relating to a dispute regarding unpaid Operational Debt. It was held that the Affidavit under Section 9 (3)(b) of IBC, 2016 is mandatory in nature and it must be in relation to notice of dispute regarding receipt or non- receipt of the payments made by the Corporate Debtor.
With the aforesaid observations, the Tribunal dismissed the Petition.
Case:M/s Welcome Steel vs Kavish International Trading Private Limited
Case No. ; CP (IB) No.778/MB-IV/2021
Counsels for the Applicants; Adv. Haris A Khan i/b/ Kurdukar & Co., Advocates
Counsel for the Respondent ;None
