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

Vishwa Steels Ltd supplied goods to Kaveri Fabricators Pvt Ltd and delivered a demand notice for the unpaid invoice. Twelve days later, Vishwa received no payment and no notice of dispute from Kaveri. Under Section 9, what is the position?

Vishwa may file. Section 9(1) permits an operational creditor to apply to the Adjudicating Authority after ten days from delivery of the demand notice or invoice, if it receives neither payment nor a notice of dispute. Twelve days have passed, so the condition is met.

  1. AVishwa may file an application before the Adjudicating Authority, since the ten-day period after delivery of the demand notice has expired without payment or a dispute noticeCorrect
  2. BVishwa must wait thirty days from delivery of the notice before it can file
  3. CVishwa cannot file unless Kaveri has first admitted the debt in writing
  4. DVishwa can file only through an information utility and not before the Adjudicating Authority

Explanation

Section 9(1) allows the operational creditor to file once ten days have passed from delivery of the demand notice or invoice without payment or a notice of dispute. Twelve days have passed, so the filing is permitted. A thirty-day wait is not in the text, and admission by the debtor is not required.

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