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

Himalaya Textiles Ltd, an operational creditor, delivered a demand notice to Narmada Dyes Ltd on 5 April. Narmada Dyes neither paid nor sent any notice of dispute. From which point may Himalaya Textiles file an application under section 9?

Himalaya Textiles may file after ten days from delivery of the demand notice have expired. Section 9(1) allows the application if, after that period, it has received neither payment nor a notice of dispute from the corporate debtor. Fourteen days is not the waiting period.

  1. AImmediately after delivering the notice on 5 April
  2. BAfter the expiry of ten days from the date of delivery of the noticeCorrect
  3. CAfter the expiry of fourteen days from the date of delivery of the notice
  4. DAfter thirty days from the date of delivery of the notice

Explanation

Section 9(1) lets the operational creditor apply after the expiry of ten days from the date of delivery of the demand notice or invoice, if no payment or dispute notice is received. Fourteen days relates to the Adjudicating Authority's time to decide, and to notice of demand under section 95 for individuals and firms.

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