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    <title>2026 (4) TMI 1163 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI</title>
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    <description>A pre-existing dispute over workmen&#039;s wage and statutory dues barred admission of the Section 9 insolvency application, because the dispute had already been raised before the labour forum and remained pending before the Industrial Court and HC. The record showed substantial payments by the corporate debtor, a challenge to the balance claim based on reconciliation and wage-data mismatch, and a consistent stand that the remaining liability was uncrystallised. In Section 9 proceedings, the Adjudicating Authority need only see whether a plausible dispute exists and cannot decide the merits of the defence. As the materials disclosed a real dispute on entitlement and quantum, the insolvency process could not be used as a recovery tool, and rejection of the application was upheld.</description>
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      <description>A pre-existing dispute over workmen&#039;s wage and statutory dues barred admission of the Section 9 insolvency application, because the dispute had already been raised before the labour forum and remained pending before the Industrial Court and HC. The record showed substantial payments by the corporate debtor, a challenge to the balance claim based on reconciliation and wage-data mismatch, and a consistent stand that the remaining liability was uncrystallised. In Section 9 proceedings, the Adjudicating Authority need only see whether a plausible dispute exists and cannot decide the merits of the defence. As the materials disclosed a real dispute on entitlement and quantum, the insolvency process could not be used as a recovery tool, and rejection of the application was upheld.</description>
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