Application to void notice issued for payment of debt

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(1) Where the notice received pursuant to Section 5 is not reasonable or where there are any other reason for not repaying the debt immediately, the concerned company may make an application to the Court in order to void the notice, not later than thirty five days after the date of receipt of that notice.
(2) Where the application referred to in Sub-section (1) is made, the Court shall issue a notice summoning the creditor giving the notice referred to in Section 5 to appear before the Court within seven days; the notice to be so issued shall also be accompanied by a copy of such application.
(3) The Court may make a decision to void or not to void the notice issued pursuant to Section 5 no later than seven days after the date of appearance of the creditor pursuant to Sub-section (2) or after the date of expiration of the time prescribed for the appearance before the Court where the creditor has failed to make such appearance.
(4) The Court may issue an order to void the notice issued pursuant Section 5 on the following condition:
(a) There is a clear dispute as to whether the creditor has extended debt to the company or not; or
(b) The debt due to be paid by the company to the credit does not appear to be payable immediately.
(5) Where the Court issues an order pursuant to Sub-section (4), no notice that is issued to pay the debt can be given to the company again on the same matter nor can an application be made for the institution of insolvency proceedings until the condition set forth in that Sub-section continues to exist.
(6) Where the Court does not issue an order pursuant to Subsection (4), the company shall pay the debt of creditor no later than thirty five days from that date.

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