https://www.taxtmi.com/caselaws?id=785599 A claim treated in a rehabilitation scheme and financial records as a contingent liability could not be finally converted into a scheme-bound debt by an equitable payment direction, especially where the claimant was not shown as an unsecured creditor in the scheme. The tribunal held that the Adjudicating Authority was required to examine whether operational debt existed, whether default had occurred, and whether any pre-existing dispute survived before dealing with a section 9 petition. Because that statutory inquiry was bypassed and payment was directed instead, the impugned order was set aside and the insolvency petition was restored for fresh consideration on merits. en-us Wed, 21 Jan 2026 00:00:00 +0530 Wed, 28 Jan 2026 07:26:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785599 A claim treated in a rehabilitation scheme and financial records as a contingent liability could not be finally converted into a scheme-bound debt by an equitable payment direction, especially where the claimant was not shown as an unsecured creditor in the scheme. The tribunal held that the Adjudicating Authority was required to examine whether operational debt existed, whether default had occurred, and whether any pre-existing dispute survived before dealing with a section 9 petition. Because that statutory inquiry was bypassed and payment was directed instead, the impugned order was set aside and the insolvency petition was restored for fresh consideration on merits. Case-Laws IBC Wed, 21 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785599