https://www.taxtmi.com/caselaws?id=752473 Corporate insolvency under the IBC depends on a subsisting default, and a Section 9 admission cannot stand once the operational debt pleaded in the Section 8 notice and application has been repaid before admission. The tribunal held that subsequent payment, if brought on record, extinguishes the foundational default and the insolvency process cannot continue on an already satisfied claim. It further held that a fresh GST or input tax credit claim not pleaded in the demand notice or Section 9 application cannot be introduced for the first time at appeal to sustain CIRP, because insolvency proceedings cannot be expanded into a recovery forum. The admission was set aside and the corporate debtor was released from CIRP. en-us Fri, 10 May 2024 00:00:00 +0530 Sat, 11 May 2024 14:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752473 Corporate insolvency under the IBC depends on a subsisting default, and a Section 9 admission cannot stand once the operational debt pleaded in the Section 8 notice and application has been repaid before admission. The tribunal held that subsequent payment, if brought on record, extinguishes the foundational default and the insolvency process cannot continue on an already satisfied claim. It further held that a fresh GST or input tax credit claim not pleaded in the demand notice or Section 9 application cannot be introduced for the first time at appeal to sustain CIRP, because insolvency proceedings cannot be expanded into a recovery forum. The admission was set aside and the corporate debtor was released from CIRP. Case-Laws Insolvency and Bankruptcy Fri, 10 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752473