https://www.taxtmi.com/caselaws?id=398723 A Section 9 IBC application is not maintainable where a genuine pre-existing dispute exists before the demand notice, because insolvency proceedings cannot be used to recover contested contractual claims. The dispute here arose from a memorandum of understanding and settlement deed concerning transfer of properties and reciprocal obligations, with notices, replies and correspondence already showing disagreement. The presence of an arbitration clause and the contractual nature of the controversy indicated that the alleged debt was not a straightforward operational debt for CIRP initiation. The Tribunal therefore held that the summary insolvency jurisdiction was not attracted and rejected the request to commence CIRP. en-us Fri, 26 Jun 2020 00:00:00 +0530 Wed, 23 Sep 2020 08:05:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=398723 A Section 9 IBC application is not maintainable where a genuine pre-existing dispute exists before the demand notice, because insolvency proceedings cannot be used to recover contested contractual claims. The dispute here arose from a memorandum of understanding and settlement deed concerning transfer of properties and reciprocal obligations, with notices, replies and correspondence already showing disagreement. The presence of an arbitration clause and the contractual nature of the controversy indicated that the alleged debt was not a straightforward operational debt for CIRP initiation. The Tribunal therefore held that the summary insolvency jurisdiction was not attracted and rejected the request to commence CIRP. Case-Laws Insolvency and Bankruptcy Fri, 26 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=398723