https://www.taxtmi.com/caselaws?id=790605 A Section 9 insolvency application was found unsustainable where the claimed operational debt arose from refund of advance paid for sugar supplies but was subject to a genuine pre-existing dispute over forfeiture or adjustment against future supplies. The record showed continuing correspondence, later negotiations, and parties' conduct inconsistent with an undisputed, crystallised debt, so the application failed on maintainability. The claim also failed on limitation because the refund demand first arose in May 2015, while the statutory demand notice was issued only in June 2018, beyond the three-year period under Article 137. The NCLAT therefore upheld dismissal of the insolvency petition. en-us Fri, 24 Apr 2026 00:00:00 +0530 Tue, 28 Apr 2026 07:29:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790605 A Section 9 insolvency application was found unsustainable where the claimed operational debt arose from refund of advance paid for sugar supplies but was subject to a genuine pre-existing dispute over forfeiture or adjustment against future supplies. The record showed continuing correspondence, later negotiations, and parties' conduct inconsistent with an undisputed, crystallised debt, so the application failed on maintainability. The claim also failed on limitation because the refund demand first arose in May 2015, while the statutory demand notice was issued only in June 2018, beyond the three-year period under Article 137. The NCLAT therefore upheld dismissal of the insolvency petition. Case-Laws IBC Fri, 24 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790605