2024 (11) TMI 841 - SCH - IBC

Rejection of application under Section 9 of the Insolvency and Bankruptcy Code, 2016 - no valid Board resolution in favour of the appellant - existing arbitration clause under the agreement - HELD THAT - This aspect as to whether there was a bona fide pre-existing dispute or not has to be considered by the Tribunal and Appellate Tribunal which has not been dealt with nor the application under Section 9 of the IBC has been rejected on the above ground. Both the impugned orders passed by the NCLAT as also by the NCLT are set aside and the application filed under Section 9 of the IBC needs to be considered afresh on its own merits after hearing learned counsel for the parties and the material on record - Appeal allowed.

Summary

The Supreme Court allowed the appeal, setting aside the orders of the NCLAT and NCLT. The application under Section 9 of the IBC needs to be reconsidered on its merits, as the issue of a pre-existing dispute was not properly addressed. The parties can raise all permissible contentions before the Tribunal.