Admissibility of section 9 application - The Appellant argued ...

Pending Civil Suit Doesn't Bar IBC Admission if Genuine Debt Dispute Exists, Supreme Court Upholds CIRP Initiation.

April 16, 2024

Case Laws Insolvency and Bankruptcy SC

Admissibility of section 9 application - The Appellant argued that the application under the IBC should not have been admitted due to the pendency of a civil suit. However, the Supreme Court held that the existence of a pending civil suit does not preclude the admission of an application under the IBC if there is a genuine dispute regarding the debt. They cited the principle established in Mobilox Innovations Private Limited Vs. Kirusa Software Private Limited [2017 (9) TMI 1270 - SUPREME COURT], emphasizing that the adjudicating authority is only required to determine whether there is a plausible contention for further investigation. Ultimately, the Supreme Court dismissed the appeal, affirming the decision of the lower tribunals to admit the application under the IBC and initiate CIRP against the Corporate Debtor.

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Admissibility of section 9 application - The Appellant argued ...

Pending Civil Suit Doesn't Bar IBC Admission if Genuine Debt Dispute Exists, Supreme Court Upholds CIRP Initiation.

April 16, 2024

Case Laws Insolvency and Bankruptcy SC

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