M/s TAS Constructions Private Limited, an operational creditor on 2nd April 2018 being the default date issued a demand notice through speed post to M/s Dheeraj Constructions Private Limited, an unpaid operational/corporate debtor demanding payment of its invoice dated 19th March 2018 for Rs 5,60,000 (15 days payment terms) towards the supply of certain works contract services as per the provisions of section 8(1) of the Insolvency and Bankruptcy Code, 2016 and rules framed their under/s.

Dheeraj Constructions Private Limited on receipt of the demand notice informed the operational creditor, that vides their e-mail dated 30th March 2018, addressed to the company and all its directors, they have disputed the invoice on the quality of the services rendered and were withholding payment till the dispute is settled but without initiating any legal proceedings under any law for the time being in force. The operational creditor on expiry of the period of 10 days from the date of delivery of the demand notice and non-payment of its dues approached the Adjudicating Authority for the initiation of the corporate insolvency resolution process under section 9(1) of the Insolvency and Bankruptcy Code, 2016. Will the application of the operational creditor filed under section 9(1) read with section 8(2) (a) of the Insolvency and Bankruptcy Code, 2016 be permitted?

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The detailed answer for the above question is provided below The given problem is based on Section 91 of the Insolvency and Bankruptcy Code 2016 Accor... View the full answer