Pre-existing dispute under the Insolvency and Bankruptcy Code bars Section 9 admission where service quality and delay were contested.

An application under Section 9 of the Insolvency and Bankruptcy Code was held not maintainable because a pre-existing dispute existed before the demand notice under Section 8(1). The record showed disagreement over delay and the adequacy, quality, and timely provision of transport services by the carrier. As such, the statutory conditions for admission were not satisfied, since operational debt proceedings under Section 9 cannot proceed where a genuine prior dispute is already on record.

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Issues: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable in view of an existing dispute between the parties.

Analysis: Demand notice under Section 8(1) had been issued, but the record showed that a dispute regarding delay and adequacy of services had arisen prior to the notice. The applicant was a transport carrier providing services, and the dispute related to the quality and timely provision of those services. In the presence of such pre-existing dispute, the statutory conditions for admission of the application were not satisfied.

Conclusion: The application under Section 9 was not maintainable.

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