NCLAT Denies Insolvency Process Due to Pre-existing Dispute Over Debt Validity and Payment Obligations.

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....Rejection of section 9 application - Initiation of CIRP - prior dispute in relation to existence of debt or not - The Appellate Tribunal (NCLAT) noted that the Mandate Letter contained ambiguities regarding the liable party for fee payments and supported the Adjudicating Authority’s view that the obligation to pay arose only upon raising of debit notes not proforma invoices, as per the Mandate Letter. Additionally, the Tribunal highlighted the engagement of IDBI Capital for similar services, which further indicated a dispute. - Applying the principles laid down by the Hon’ble Supreme Court in Mobilox Innovations v. Kirusa Software, the Tribunal concluded that the pre-existing disputes were not frivolous or spurious and required further investigation.....