https://www.taxtmi.com/caselaws?id=792402 An operational creditor's Section 9 insolvency application must be rejected where the corporate debtor shows a pre-existing dispute before the demand notice or where the information utility records the debt as disputed. The settled test is whether the dispute is real and plausible, not spurious or illusory. On the materials recorded, the corporate debtor had raised disputes before the notice and repeated them in reply, and the information utility also reflected the debt as disputed. The existence of a genuine pre-existing dispute made the application not maintainable and required rejection. en-us Mon, 25 May 2026 00:00:00 +0530 Thu, 28 May 2026 08:21:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792402 An operational creditor's Section 9 insolvency application must be rejected where the corporate debtor shows a pre-existing dispute before the demand notice or where the information utility records the debt as disputed. The settled test is whether the dispute is real and plausible, not spurious or illusory. On the materials recorded, the corporate debtor had raised disputes before the notice and repeated them in reply, and the information utility also reflected the debt as disputed. The existence of a genuine pre-existing dispute made the application not maintainable and required rejection. Case-Laws IBC Mon, 25 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792402