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CS Professional · Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process

Bharat Steelworks Pvt Ltd (corporate debtor) receives a demand notice from its supplier Kaveri Metals on 3 March for an unpaid invoice. Within what period must Bharat Steelworks bring to the supplier's notice the existence of a dispute or the payment of the debt?

The corporate debtor must respond within ten days of receiving the demand notice or copy of the invoice. In that time it must either show a dispute exists or prove payment. Seven and fourteen days relate to other steps, such as curing defects or the Adjudicating Authority's decision.

  1. ASeven days of receipt of the demand notice or invoice
  2. BTen days of receipt of the demand notice or invoiceCorrect
  3. CFourteen days of receipt of the demand notice or invoice
  4. DThirty days of receipt of the demand notice or invoice

Explanation

Section 8(2) requires the corporate debtor to respond within ten days of receiving the demand notice or copy of the invoice. Seven days is the period for rectifying defects in an application, and fourteen days is the period for the Adjudicating Authority to decide, so neither applies here.

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