https://www.taxtmi.com/caselaws?id=756702 NCLAT dismissed the appeal challenging rejection of insolvency application under Section 9 of IBC. The appellate tribunal upheld the adjudicating authority's findings that the claimed amount fell below the Rs. 1 crore threshold as interest alone cannot constitute operational debt under the Code. The tribunal relied on SS Polymers precedent, noting that unilateral interest stipulation without agreement weakens the claim. Additionally, pre-existing disputes existed between parties regarding dishonored cheques, with respondent alleging fraudulent date changes and filing police complaint for cheating and forgery. NCLAT confirmed that plausible pre-existing dispute contentions suffice for Section 9 application rejection. en-us Tue, 06 Aug 2024 00:00:00 +0530 Wed, 07 Aug 2024 14:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756702 NCLAT dismissed the appeal challenging rejection of insolvency application under Section 9 of IBC. The appellate tribunal upheld the adjudicating authority's findings that the claimed amount fell below the Rs. 1 crore threshold as interest alone cannot constitute operational debt under the Code. The tribunal relied on SS Polymers precedent, noting that unilateral interest stipulation without agreement weakens the claim. Additionally, pre-existing disputes existed between parties regarding dishonored cheques, with respondent alleging fraudulent date changes and filing police complaint for cheating and forgery. NCLAT confirmed that plausible pre-existing dispute contentions suffice for Section 9 application rejection. Case-Laws Insolvency and Bankruptcy Tue, 06 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756702