The NCLAT held that the corporate debtor failed to substantiate ...

Operational Creditor's Application Upheld: Corporate Debtor Fails to Prove Pre-Existing Dispute.

Case Laws Insolvency and Bankruptcy

August 24, 2024

The NCLAT held that the corporate debtor failed to substantiate a pre-existing dispute with the operational creditor regarding the unpaid operational debt. The corporate debtor's claims of fake invoices and GST raids did not constitute a genuine pre-existing dispute concerning the operational debt. The corporate debtor's contentions about solvency and civil proceedings were irrelevant for initiating CIRP under IBC. Since the corporate debtor did not demonstrate a pre-existing dispute as required u/s 9, the adjudicating authority rightly admitted the operational creditor's application and initiated CIRP against the corporate debtor. The appeal was dismissed.

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The NCLAT held that the corporate debtor failed to substantiate ...

Operational Creditor's Application Upheld: Corporate Debtor Fails to Prove Pre-Existing Dispute.

Case Laws Insolvency and Bankruptcy

August 24, 2024

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