Pre-existing dispute under IBC over contaminated supply via agents found plausible, Section 9 admission set aside and CIRP revoked.
X X X X Extracts X X X X
X X X X Extracts X X X X
....Pre-existing dispute concerning supply of contaminated goods communicated via agents was found to constitute a notice of dispute under Section 9(5)(ii)(d) and satisfy the Mobilox plausibility threshold; these communications required consideration and could not be dismissed as spurious, so the Section 9 application should have been rejected. The Adjudicating Authority erred in admitting the Section 9 petition and initiating CIRP; the admission and all consequential orders are set aside, the corporate debtor is released from CIRP, a directed interim payment is to be made, and the operational creditor and third parties remain free to pursue other legal remedies.....




TaxTMI
TaxTMI