Pre-existing operational debt disputes require genuine evidence, while undirected running-account payments may be appropriated on a first-in-first-out...
Agency in CNG distribution makes outlet operators commission agents, rendering taxable Business Auxiliary Service rather than purchasing goods for res...
Composite inpatient healthcare supply may retain exemption despite MRP medicine billing, while separate taxable sale characterisation remains disputed...
A disputed refund of advance paid for supply of goods was not treated as an undisputed operational debt, because the parties had continued negotiations, entered a later settlement arrangement, and the corporate debtor had asserted forfeiture for failure to lift stock within time. On that basis, debt and default were held not to coexist for Section 9 insolvency relief, and any challenge to forfeiture had to be pursued elsewhere. The Tribunal also held that limitation ran from the first refund demand, so the insolvency notice issued more than three years later was time-barred under Article 137. The Section 9 application was therefore dismissed.
A disputed refund of advance paid for supply of goods was not treated as an undisputed operational debt, because the parties had continued negotiations, entered a later settlement arrangement, and the corporate debtor had asserted forfeiture for failure to lift stock within time. On that basis, debt and default were held not to coexist for Section 9 insolvency relief, and any challenge to forfeiture had to be pursued elsewhere. The Tribunal also held that limitation ran from the first refund demand, so the insolvency notice issued more than three years later was time-barred under Article 137. The Section 9 application was therefore dismissed.
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