https://www.taxtmi.com/caselaws?id=769892 NCLAT dismissed the appeal challenging rejection of Section 9 application. The operational creditor sought insolvency proceedings against the corporate debtor for unpaid dues. However, the corporate debtor had issued a show cause notice dated 21.06.2022 regarding defective work quality, prior to the operational creditor's demand notice dated 01.07.2022. Despite the operational creditor's arguments that disputes were raised post facto to avoid payment and that partial payments were made without protest, NCLAT found substantial communication between parties indicating genuine pre-existing disputes. The tribunal held that such disputes cannot be adjudicated under Section 9(5)(ii)(d) of the Insolvency Code and must be resolved through appropriate forums. The adjudicating authority's rejection was upheld. en-us Thu, 01 May 2025 00:00:00 +0530 Sat, 03 May 2025 08:34:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769892 NCLAT dismissed the appeal challenging rejection of Section 9 application. The operational creditor sought insolvency proceedings against the corporate debtor for unpaid dues. However, the corporate debtor had issued a show cause notice dated 21.06.2022 regarding defective work quality, prior to the operational creditor's demand notice dated 01.07.2022. Despite the operational creditor's arguments that disputes were raised post facto to avoid payment and that partial payments were made without protest, NCLAT found substantial communication between parties indicating genuine pre-existing disputes. The tribunal held that such disputes cannot be adjudicated under Section 9(5)(ii)(d) of the Insolvency Code and must be resolved through appropriate forums. The adjudicating authority's rejection was upheld. Case-Laws IBC Thu, 01 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769892