A pre-existing dispute and an operational-debt application

At a glance

Preserve the dispute record from before the statutory demand. A genuine earlier dispute can be material to the operational-creditor route.

Law and context

Sections 8 and 9 of the IBC address notice of dispute and application conditions. The nature, timing and evidence of the dispute must be assessed with current judicial principles; a bare assertion and a documented disagreement are not automatically equivalent.

Practical next step

Gather emails, quality complaints, debit notes, arbitration or court papers and the full transaction record. Explain the chronology accurately rather than selecting only helpful messages.

Important qualifications

This guide does not decide that an application must be admitted or rejected. Do not create a backdated dispute or suppress earlier correspondence.

Document checklist

• Demand notice
• Earlier dispute communications
• Transaction documents
• Existing dispute proceedings

Sources

• The Insolvency and Bankruptcy Code, 2016 — 8,9

General information. The appropriate course depends on the complete facts, documents and applicable law. Editorial process and website disclaimer.