Section 9 insolvency admission may proceed despite disputed bills and counterclaims where no pre-existing dispute exists.

Disputed claims, counterclaims, and objections based on alleged defects in bills or joint inspection do not, by themselves, bar admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. A dispute as to claims and counterclaims is not to be adjudicated in Section 9 proceedings, and where no pre-existing dispute is shown, the presence of contractual objections does not prevent initiation of the Corporate Insolvency Resolution Process. On that basis, the challenge to the admission order failed.

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Issues: Whether the admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 could be challenged on the ground of disputed claims, counterclaims, and alleged defects in bills and joint inspection.

Analysis: A dispute as to claims and counterclaims cannot be adjudicated in proceedings under Section 9. In the absence of any pre-existing dispute, the existence of disputed bills or similar contractual objections does not prevent admission of the application for initiation of the Corporate Insolvency Resolution Process.

Conclusion: The challenge to the admission order failed, and the appeal was not allowed.

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