Corporate Insolvency Resolution Process by Operational Creditor [ Section 8 ]

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....of section 7 stands in contrast with the scheme under section 8 where an OC is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the operational debtor in the manner provided in section 8(1) of the Code. Time Period to revert by the Corporate Debtor [ Section 8(2) ] * The corporate debtor shall, within a period of 10 days of the receipt of the demand notice or copy of the invoice mentioned in section 8(1) bring to the notice of the operational creditor- * (a) existence of a dispute, if any, or and record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such dispute; * (b) the payment of unpaid operational debt- * (i) by sen....

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....upreme Court / NCLAT * A dispute must truly exist in facts and should not be spurious, hypothetical and illusory. [ Vishal Vijay Kalantri Vs. DBM Geotechnics & Constructions Pvt. Ltd. & Anr. Supreme Court, dated 20.07.2020 ]. * The moment there is pre-existence of a dispute, the OC gets out of the clutches of the Code. [ Innoventive Industries Ltd. Vs. ICICI Bank & Anr. Supreme Court, dated 31.08.2017 ] * The expression 'an operational creditor may on the occurrence of a default deliver a demand notice' under section 8 of the Code must be read as including an OCs authorised agent and lawyer, as has been fleshed out in Forms 3 and 5 appended to the AA Rules. [ Macquarie Bank Limited Vs. Shilpi Cable Technologies Ltd. Supreme Court, dat....