NCLAT allowed the appeal and set aside the impugned order,...

NCLAT allowed the appeal and set aside the impugned order, holding that the demand notice in Form 3 accompanied by invoices satisfied Rule 5 and Section 8 IBC requirements to establish operational debt and default; the notice was not rendered invalid on hyper-technical grounds where invoices were unchallenged as fabricated. The Tribunal erred in finding a pre-existing dispute: the alleged dispute arising from customs seizure post-dating the transactions was not evidenced by prior notice, suit or arbitration, and the liability remained uncrystallized given ongoing proceedings and the role of the clearing agent. Consequently the petition under Section 9 dismissed below is reinstated in favour of the Operational Creditor.

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