Consumed & banked units as CIRP trigger

In Mr. Narayan Singh Pathania v. Valuelabs LLP & Anr., the National Company Law Appellate Tribunal (“NCLAT”) has once again laid down that a dispute in relation to an operational debt is a valid defence to an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (“IBC”) filed by an Operational Creditor only when such dispute is found to be ‘pre-existing’, i.e., the Corporate Debtor should have raised the dispute with respect to the quality of goods provided or services rendered, as the case may be, prior to the invoices raised by the Operational Creditor or Receipt of demand notice.

Consumed & banked units as CIRP trigger

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