Pre-Existing Dispute Does Not Bar Operational Creditor From Filing S.9 Application: NCLT Admits CIRP Against Syska LED

The National Company Law Tribunal (NCLT) Mumbai admitted a Section 9 petition filed by Sunstar Industries against Syska LED Lights Pvt. Ltd. for defaulting on a payment of Rs 7.70 Crores. Despite Syska’s acknowledgment of the debt and issuance of post-dated cheques, the payments were dishonored. Syska’s offer for a one-time settlement was rejected by Sunstar due to interest disputes. The NCLT ruled that the initiation of proceedings before the Micro, Small and Medium Enterprise Facilitation Council and a complaint under Section 138 of the Negotiable Instruments Act did not preclude the filing of a Section 9 application under the Insolvency and Bankruptcy Code, 2016.