Appeal Dismissed: Pre-existing Dispute Over Goods Quality Validates Rejection of Section 9 Application.

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....The appeal was dismissed by the NCLAT as the Adjudicating Authority correctly dismissed the Section 9 application due to the existence of a pre-existing dispute between the parties regarding the quality of goods supplied by the Operational Creditor, prior to the issuance of the demand notice. The Respondent had filed a civil suit before the demand notice and contested the defective goods supplied, establishing a real, substantial, and bona fide dispute as per the Supreme Court's ruling in Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd. The Appellant's claim for outstanding payments was also refuted by the Respondent's bank statements and ledgers, indicating no outstanding dues. The impugned order was upheld, and the appeal was dismissed.....