Operational Creditors Must Prove Specific Dispute Relating to Claim for CIRP u/s 8(2)(a) of Insolvency Code.

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Full Text of the Document

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....Initiation of CIRP - Operational Creditors - existence of pre-existing dispute or not - Careful reading of Section 8(2)(a) of the Code provides that the existence of dispute has to be in respect of the amount so claimed and it is not referable to any kind of dispute such as the one which is highlighted in the present controversy - One thing is clear that the plea of pre-existing dispute has to co-relate with the amount claimed by the Operational Creditor or if a suit or arbitration proceedings is pending then the same should also be related to such dispute - AT....