https://www.taxtmi.com/caselaws?id=348513 The SC allowed the appeal and set aside the Appellate Tribunal's judgment in a corporate insolvency case under the Insolvency and Bankruptcy Code, 2016. The dispute involved operational debt related to telecom rental payments where the debtor claimed breach of NDA by the creditor. The Court applied the "test of existence of a dispute" under Section 5(6) of the Code, finding that the appellant raised a plausible contention requiring investigation that was not patently feeble or frivolous. The defense was deemed genuine rather than spurious or vexatious. Key factors included: the debtor's consistent denial of liability citing NDA breach, the creditor's silence for over a year followed by attempts to revive business relations, and the creditor's failure to initiate legal proceedings for nearly two years except for the insolvency application. The Court concluded a genuine dispute existed that warranted proper adjudication before corporate insolvency proceedings could commence. en-us Thu, 21 Sep 2017 00:00:00 +0530 Tue, 22 Jul 2025 10:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=348513 The SC allowed the appeal and set aside the Appellate Tribunal's judgment in a corporate insolvency case under the Insolvency and Bankruptcy Code, 2016. The dispute involved operational debt related to telecom rental payments where the debtor claimed breach of NDA by the creditor. The Court applied the "test of existence of a dispute" under Section 5(6) of the Code, finding that the appellant raised a plausible contention requiring investigation that was not patently feeble or frivolous. The defense was deemed genuine rather than spurious or vexatious. Key factors included: the debtor's consistent denial of liability citing NDA breach, the creditor's silence for over a year followed by attempts to revive business relations, and the creditor's failure to initiate legal proceedings for nearly two years except for the insolvency application. The Court concluded a genuine dispute existed that warranted proper adjudication before corporate insolvency proceedings could commence. Case-Laws IBC Thu, 21 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=348513