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        IBC

        NCLAT dismissed the appeal filed by the Operational Creditor...

        Operational Creditor's Appeal Rejected: Pre-Existing Dispute Invalidates Insolvency Proceedings Under Section 9(5)(ii)(d)

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                NCLAT dismissed the appeal filed by the Operational Creditor against the Corporate Debtor's Section 9 Application rejection. The tribunal found a pre-existing dispute substantiated by multiple communications, including a Show Cause Notice issued prior to the demand notice. The court determined that the disputes regarding work quality, performance, and potential revenue losses were genuine and predated the operational creditor's demand. As per Section 9(5)(ii)(d) of the Insolvency Code, the existence of a pre-existing dispute renders the insolvency application non-maintainable, thereby validating the original order's dismissal and confirming no procedural infirmities in the adjudicating authority's decision.
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