https://www.taxtmi.com/caselaws?id=775394 The NCLAT upheld the rejection of the Section 9 application due to a pre-existing dispute between the parties regarding special quantity discounts reflected in credit notes. The Operational Creditor admitted only 8 out of 17 credit notes, confirming the existence of an agreed business practice for discounts, while disputing the remainder. The Corporate Debtor's ledger showed an outstanding amount of Rs.22,56,833/-, which it was willing to pay, but the Operational Creditor refused acceptance. The Tribunal held that the dispute was plausible and not a feeble legal argument, warranting rejection of the application under Section 9. The Adjudicating Authority was correct in not conducting a detailed inquiry into the claims. The appeal was dismissed, with a direction that the Corporate Debtor shall pay the admitted amount if the Operational Creditor provides bank details. en-us Mon, 21 Jul 2025 00:00:00 +0530 Fri, 25 Jul 2025 08:28:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775394 The NCLAT upheld the rejection of the Section 9 application due to a pre-existing dispute between the parties regarding special quantity discounts reflected in credit notes. The Operational Creditor admitted only 8 out of 17 credit notes, confirming the existence of an agreed business practice for discounts, while disputing the remainder. The Corporate Debtor's ledger showed an outstanding amount of Rs.22,56,833/-, which it was willing to pay, but the Operational Creditor refused acceptance. The Tribunal held that the dispute was plausible and not a feeble legal argument, warranting rejection of the application under Section 9. The Adjudicating Authority was correct in not conducting a detailed inquiry into the claims. The appeal was dismissed, with a direction that the Corporate Debtor shall pay the admitted amount if the Operational Creditor provides bank details. Case-Laws IBC Mon, 21 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775394