NCLT Clarifies IBC is Not a Debt Collection Tool; Sections 7 and 9 Should Not Pressure Companies Over Disputed Claims.

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....Initiation of CIRP - Operational Creditors - pre-existence of dispute - The NCLT, exercising powers under Section 7 or Section 9 of IBC, is not a debt collection forum. The IBC tackles and/or deals with insolvency and bankruptcy. It is not the object of the IBC that CIRP should be initiated to penalize solvent companies for non-payment of disputed dues claimed by an operational creditor. - SC....