Unpaid supply of 346 units held operational debt; default established and Section 9/CIRP admission upheld after no bona fide dispute

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Whether operational debt and default existed: the tribunal found invoices for supply of 346 units undisputedly delivered, partial payments accepted without quality/quantity or pricing objections, and an outstanding unpaid balance of €1,28,204.70 - therefore default on an operational debt that was due and payable was established. Whether pre-existing disputes barred Section 9 relief: the alleged exclusivity agreement involved a different legal entity, the injunction suit concerned distinct subject-matter and was not raised in the demand notice, and the asserted disputes were held frivolous - consequently no bona fide pre-existing dispute existed and admission under Section 9/CIRP initiation was valid. - NCLAT....