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The NCLAT upheld the rejection of the Section 9 application for initiation of CIRP, finding that a genuine pre-existing dispute existed between the parties at the time of filing. The appellant's claim that the dispute regarding defective batteries was resolved was contradicted by ongoing communications evidencing unresolved issues. The appellant's liability for repairs and replacements under a 39-month warranty and the contested indemnity bond-alleged to be signed under duress-were deemed valid grounds for dispute requiring detailed inquiry beyond summary proceedings. Consequently, the operational debt was not payable without resolution of these disputes, barring invocation of Section 9. The Adjudicating Authority's dismissal of the application was affirmed, and the appeal was dismissed with no interference warranted.
The NCLAT upheld the rejection of the Section 9 application for initiation of CIRP, finding that a genuine pre-existing dispute existed between the parties at the time of filing. The appellant's claim that the dispute regarding defective batteries was resolved was contradicted by ongoing communications evidencing unresolved issues. The appellant's liability for repairs and replacements under a 39-month warranty and the contested indemnity bond-alleged to be signed under duress-were deemed valid grounds for dispute requiring detailed inquiry beyond summary proceedings. Consequently, the operational debt was not payable without resolution of these disputes, barring invocation of Section 9. The Adjudicating Authority's dismissal of the application was affirmed, and the appeal was dismissed with no interference warranted.
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