Section 9 IBC petition not admitted where C-Form dispute required tax-department resolution and parties' dispute was treated as remediable.

A section 9 IBC petition based on alleged operational debt from supply transactions, refund of security deposit, interest, and non-issuance of C-Forms was not admitted for CIRP. The tribunal treated the matter as one where the principal amount had been refunded and the remaining dispute on C-Forms required resolution with the Commercial Tax Department, so it disposed of the petition with a direction that the respondent cooperate fully with the petitioner in resolving the issue with the Commercial Tax Officer.

---

---

Issues: Whether the company petition under section 9 of the Insolvency and Bankruptcy Code, 2016 should be admitted for initiation of the corporate insolvency resolution process, or disposed of with directions in view of the alleged resolution of the main dispute.

Analysis: The petition was founded on an alleged operational debt arising from supply transactions, refund of security deposit, interest, and consequences claimed for non-issuance of C-Forms. The respondent contested the claim and stated that the principal amount had been refunded, while also indicating that the dispute concerning C-Forms required resolution with the Commercial Tax Department. In view of the stance taken by both sides and the materials placed, the matter was treated as suitable for disposal with a direction to facilitate resolution of the tax-related issue rather than for admission into insolvency proceedings.

Conclusion: The petition was not admitted for CIRP and was disposed of with a direction to the respondent to extend full cooperation to the petitioner for resolving the issue with the Commercial Tax Officer.

---