NCLT JUDGEMENT ON RULE 5, 6 OF THE INSOLVENCY AND BANKRUPTCY (APPLICATION TO ADJUDICATING AUTHORITY) RULES, 2016 AND SECTION 4, 8, 8(1), 8(2), 8(2)(A), 9, 9(3) (B), 9(5), 9(5)(2)OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016
Micra Systems Private Limited Vs. Masters India Private Limited, (2020) 05 NCLT CK 0002 NCLT dismissed the application filed by Petitioner/Operational Creditor under Section 9 of the IBC, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, praying therein to initiate CIRP against the Respondent/Corporate Debtor. While dismissing the application NCLT held that therefore, if we shall consider the case in hand in the light of the decisions then we find that in the case in hand also there is a pre-existing dispute between the parties regarding the terms and conditions of the agreements, payments of the salaries, engagement of the employees and other issues. Hence in view of Section 9(5)(2) of IBC, 2016, if notice of disputes has been received by the Operational Creditor or there is a record of disputes in the information utility in that case the adjudicating authority has no option but to reject the application. Here, in the case in...