https://www.taxtmi.com/caselaws?id=451265 NCLAT dismissed an appeal challenging rejection of Section 9 petition for CIRP initiation. Appellant claimed operational dues from Corporate Debtor as former employee, but settlement agreement was executed with subsidiary company MNT, not Corporate Debtor. NCLAT upheld lower court's finding that holding and subsidiary companies are separate legal entities per Vodafone SC judgment. No evidence of fraud or sham transactions warranting corporate veil piercing. Since disputed debt existed between parties, CIRP initiation was inappropriate under Mobilox SC precedent requiring undisputed debt for operational creditor applications. en-us Wed, 20 Mar 2024 00:00:00 +0530 Fri, 22 Mar 2024 09:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451265 NCLAT dismissed an appeal challenging rejection of Section 9 petition for CIRP initiation. Appellant claimed operational dues from Corporate Debtor as former employee, but settlement agreement was executed with subsidiary company MNT, not Corporate Debtor. NCLAT upheld lower court's finding that holding and subsidiary companies are separate legal entities per Vodafone SC judgment. No evidence of fraud or sham transactions warranting corporate veil piercing. Since disputed debt existed between parties, CIRP initiation was inappropriate under Mobilox SC precedent requiring undisputed debt for operational creditor applications. Case-Laws Insolvency and Bankruptcy Wed, 20 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451265