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Informative

Corporate Debtor Not Barred From Raising Pre-Existing Dispute Even in absence of reply within period u/s 8 of IBC: NCLT

Update / Judgement Date

01 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLT has ruled that a corporate debtor is not barred from raising a pre-existing dispute even in the absence of a reply within the period under Section 8 of the IBC. This ruling clarifies the rights of corporate debtors in insolvency proceedings. It ensures that legitimate disputes are addressed. The decision promotes fairness.