Provisional attachment under Prevention of Money Laundering Act requires exhaustion of statutory remedies; impugned order set aside, appeal to tribuna...
Restoration of property under Prevention of Money Laundering Act after attachment dispute rendered academic; possession directed to successful resolut...
Goods Transport Agency services via e commerce portals: consignment note creates custody and liability and enables exemption for unregistered recipien...
Reverse charge and assignment of royalty collection: exemption for excess royalty collectors subject to reconciliation; leaseholders remain liable und...
A Section 9 IBC application cannot be admitted where the record shows a genuine and plausible pre-existing dispute before the demand notice. Applying Mobilox and later decisions, the Court held that the adjudicating authority at this stage only examines whether a plausible contention requiring investigation exists, not the ultimate merits of the dispute. Written complaints about defective supplies, repeated demands for reconciliation of accounts, a prior police complaint, discrepancies in ledger accounts, and shifting stands on the amount due showed no consensus on liability or quantum and indicated more than a sham defence. The NCLT had correctly rejected the application, and the NCLAT was wrong to reverse that finding.
A Section 9 IBC application cannot be admitted where the record shows a genuine and plausible pre-existing dispute before the demand notice. Applying Mobilox and later decisions, the Court held that the adjudicating authority at this stage only examines whether a plausible contention requiring investigation exists, not the ultimate merits of the dispute. Written complaints about defective supplies, repeated demands for reconciliation of accounts, a prior police complaint, discrepancies in ledger accounts, and shifting stands on the amount due showed no consensus on liability or quantum and indicated more than a sham defence. The NCLT had correctly rejected the application, and the NCLAT was wrong to reverse that finding.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4817 
Join Channel 
