https://www.taxtmi.com/caselaws?id=447172 The NCLAT Principal Bench dismissed an appeal challenging rejection of a Section 9 application for initiating CIRP. The operational creditor failed to establish default as payment under Clause 17 of the work agreement was contingent upon the corporate debtor receiving corresponding payment from a third party, which was not proven. The creditor also failed to raise timely notice under Clause 18 and lacked the required Taking Over Certificate for final payment. The tribunal found pre-existing disputes regarding service quality evidenced by debit notes, concluding the corporate debtor's defense was substantiated. Since disputed operational debt cannot trigger Section 9 proceedings under IBC, the application was properly rejected. en-us Mon, 18 Dec 2023 00:00:00 +0530 Tue, 19 Dec 2023 18:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447172 The NCLAT Principal Bench dismissed an appeal challenging rejection of a Section 9 application for initiating CIRP. The operational creditor failed to establish default as payment under Clause 17 of the work agreement was contingent upon the corporate debtor receiving corresponding payment from a third party, which was not proven. The creditor also failed to raise timely notice under Clause 18 and lacked the required Taking Over Certificate for final payment. The tribunal found pre-existing disputes regarding service quality evidenced by debit notes, concluding the corporate debtor's defense was substantiated. Since disputed operational debt cannot trigger Section 9 proceedings under IBC, the application was properly rejected. Case-Laws Insolvency and Bankruptcy Mon, 18 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447172