https://www.taxtmi.com/caselaws?id=447003 NCLAT dismissed corporate debtor's appeal against section 9 application admission. The tribunal held that insurance company's payment to operational creditor under third-party liability did not absolve corporate debtor from its operational debt obligations. Corporate debtor remained liable despite insurance settlement, as the insurance contract was separate and had been communicated to debtor. The court rejected corporate debtor's pre-existing dispute defense, finding it dishonest since debtor had acknowledged dues and provided payment assurances for two years before raising frivolous defenses only after demand notice. Section 9 application was maintainable. en-us Wed, 13 Dec 2023 00:00:00 +0530 Fri, 15 Dec 2023 15:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447003 NCLAT dismissed corporate debtor's appeal against section 9 application admission. The tribunal held that insurance company's payment to operational creditor under third-party liability did not absolve corporate debtor from its operational debt obligations. Corporate debtor remained liable despite insurance settlement, as the insurance contract was separate and had been communicated to debtor. The court rejected corporate debtor's pre-existing dispute defense, finding it dishonest since debtor had acknowledged dues and provided payment assurances for two years before raising frivolous defenses only after demand notice. Section 9 application was maintainable. Case-Laws Insolvency and Bankruptcy Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447003