https://www.taxtmi.com/caselaws?id=450784 The NCLAT Principal Bench dismissed an appeal challenging rejection of a Section 9 IBC application for CIRP initiation. The operational creditor issued a demand notice on 15.12.2017, and the corporate debtor raised dispute notice on 26.12.2017, claiming breach of agency agreement due to CBI arrests of creditor's officials in March 2011 for illegal gratification. The corporate debtor terminated the agreement and withheld payments. The NCLAT held that a genuine pre-existing dispute existed before the demand notice, supported by consistent denial of liability and prior communications from 2015. The adjudicating authority correctly rejected the Section 9 application as the operational debt was legitimately disputed, not illusory or spurious. en-us Tue, 12 Mar 2024 00:00:00 +0530 Wed, 13 Mar 2024 08:42:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450784 The NCLAT Principal Bench dismissed an appeal challenging rejection of a Section 9 IBC application for CIRP initiation. The operational creditor issued a demand notice on 15.12.2017, and the corporate debtor raised dispute notice on 26.12.2017, claiming breach of agency agreement due to CBI arrests of creditor's officials in March 2011 for illegal gratification. The corporate debtor terminated the agreement and withheld payments. The NCLAT held that a genuine pre-existing dispute existed before the demand notice, supported by consistent denial of liability and prior communications from 2015. The adjudicating authority correctly rejected the Section 9 application as the operational debt was legitimately disputed, not illusory or spurious. Case-Laws Insolvency and Bankruptcy Tue, 12 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450784