https://www.taxtmi.com/caselaws?id=428967 A genuine pre-existing dispute bars admission of an operational creditor's Section 9 insolvency application where contemporaneous material shows a plausible claim of defective goods and contractual breach. The purchase order required specified quality and allowed rejection for defects; prior emails recorded complaints about poor coal quality, excess moisture, substandard size, and boiler damage. Acceptance and consumption of goods did not, by themselves, destroy the buyer's defence, because under the Sale of Goods Act a buyer may still rely on breach of condition as breach of warranty and seek price reduction or damages. On the limited insolvency threshold, the authority must only assess whether the dispute is real and not illusory, and here the application could not be admitted. en-us Thu, 13 Oct 2022 00:00:00 +0530 Thu, 09 Apr 2026 10:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=428967 A genuine pre-existing dispute bars admission of an operational creditor's Section 9 insolvency application where contemporaneous material shows a plausible claim of defective goods and contractual breach. The purchase order required specified quality and allowed rejection for defects; prior emails recorded complaints about poor coal quality, excess moisture, substandard size, and boiler damage. Acceptance and consumption of goods did not, by themselves, destroy the buyer's defence, because under the Sale of Goods Act a buyer may still rely on breach of condition as breach of warranty and seek price reduction or damages. On the limited insolvency threshold, the authority must only assess whether the dispute is real and not illusory, and here the application could not be admitted. Case-Laws IBC Thu, 13 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=428967