https://www.taxtmi.com/caselaws?id=776148 The NCLAT set aside the Adjudicating Authority's order admitting the Section 9 application and initiating CIRP against the Corporate Debtor. The Tribunal found sufficient evidence of pre-existing disputes regarding the quality and completion of work, as well as the crystallization and payment of the debt. Communications between the parties and the end user revealed ongoing issues and partial contract termination predating the demand notice. The Adjudicating Authority erred in ignoring these disputes and accepting the Operational Creditor's unilateral claim of satisfactory performance. Applying the Supreme Court's Mobilox test, the Tribunal held that the defence raised by the Corporate Debtor was plausible and not frivolous, thus Section 9 proceedings were improperly initiated. The appeal was allowed, and all orders arising from the impugned admission were set aside. en-us Wed, 30 Jul 2025 00:00:00 +0530 Thu, 31 Jul 2025 10:10:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776148 The NCLAT set aside the Adjudicating Authority's order admitting the Section 9 application and initiating CIRP against the Corporate Debtor. The Tribunal found sufficient evidence of pre-existing disputes regarding the quality and completion of work, as well as the crystallization and payment of the debt. Communications between the parties and the end user revealed ongoing issues and partial contract termination predating the demand notice. The Adjudicating Authority erred in ignoring these disputes and accepting the Operational Creditor's unilateral claim of satisfactory performance. Applying the Supreme Court's Mobilox test, the Tribunal held that the defence raised by the Corporate Debtor was plausible and not frivolous, thus Section 9 proceedings were improperly initiated. The appeal was allowed, and all orders arising from the impugned admission were set aside. Case-Laws IBC Wed, 30 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776148