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

Lotus Packaging Ltd, an operational creditor, delivered a demand notice to Orion Foods Ltd on 1 June. Orion Foods neither paid nor sent any dispute notice. On what basis may Lotus Packaging file a Section 9 application?

Lotus Packaging may file only after ten days have expired from the date of delivery of the notice or invoice, and it has received neither payment nor a notice of dispute. Filing earlier is premature, and no acknowledgment by the debtor is needed.

  1. AImmediately after delivery, as default has already occurred
  2. BAfter ten days from the date of delivery of the notice or invoice, if no payment or dispute notice is receivedCorrect
  3. CAfter fourteen days from delivery, only if the debtor has acknowledged the debt
  4. DAfter the Adjudicating Authority issues a notice to Orion Foods

Explanation

Section 9(1) allows the application only after the ten-day period from delivery of the notice or invoice has expired without receipt of payment or a notice of dispute. Filing immediately would be premature, and no debtor acknowledgment or prior tribunal notice is required.

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