NCLAT dismissed the appeal and affirmed the Adjudicating...

NCLAT dismissed the appeal and affirmed the Adjudicating Authority's rejection of the Section 9 application filed by the operational creditor. The Tribunal held that a statutory prerequisite under Section 8 requires communication of any dispute within ten days of the demand notice, but where a bona fide dispute is communicated prior to the filing of a Section 9 petition it retains relevance even if sent after the ten-day window. On the facts, the corporate debtor's notice of dispute pre-dated the Section 9 filing and evidence showed a pre-existing commercial dispute arising from prior purchase orders, thereby disentitling the operational creditor to initiate insolvency proceedings. Other pleaded defenses (limitation, assignment) were held unnecessary to adjudicate. Appeal dismissed.

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