https://www.taxtmi.com/caselaws?id=759061 NCLAT Principal Bench dismissed appeal challenging rejection of Section 9 IBC application. Operational creditor claimed debt on five invoices from 2019 but produced ledgers from 2016. Corporate debtor contested FIFO payment adjustment method and demonstrated payments through bank statements. Court found pre-existing dispute regarding quality of goods supplied, evidenced by civil suit filed before demand notice. Under Section 9(5)(ii)(d) IBC, application must be rejected when pre-existing dispute exists prior to demand notice. Following Mobilox Innovations precedent, dispute need not be meritorious but must be real, substantial, and bona fide, predating demand notice. Adjudicating Authority's dismissal upheld. en-us Fri, 20 Sep 2024 00:00:00 +0530 Mon, 23 Sep 2024 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759061 NCLAT Principal Bench dismissed appeal challenging rejection of Section 9 IBC application. Operational creditor claimed debt on five invoices from 2019 but produced ledgers from 2016. Corporate debtor contested FIFO payment adjustment method and demonstrated payments through bank statements. Court found pre-existing dispute regarding quality of goods supplied, evidenced by civil suit filed before demand notice. Under Section 9(5)(ii)(d) IBC, application must be rejected when pre-existing dispute exists prior to demand notice. Following Mobilox Innovations precedent, dispute need not be meritorious but must be real, substantial, and bona fide, predating demand notice. Adjudicating Authority's dismissal upheld. Case-Laws IBC Fri, 20 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759061