NCLT admitted an insolvency petition involving ₹3.96 crore in operational debt, rejecting the defence of pre-existing dispute based on post-petition mediation. The ruling clarifies that disputes raised after filing cannot qualify as pre-existing under Section 9(3)(c) of IBC.
NCLT Admits ₹3.96 Cr Insolvency Plea, Rejects Dispute Defence
The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, involving an operational debt of ₹3.96 crore. The corporate debtor had contested the plea, asserting a pre-existing dispute via ongoing mediation initiated after the petition was filed.
The tribunal held that mediation commenced post-filing of the application cannot constitute a pre-existing dispute under Section 9(3)(c) of the IBC. Noting that no prior legal proceedings or written notice of dispute existed prior to the operational creditor’s demand notice, the NCLT ruled the defence as untenable.
"A dispute cannot be retroactively created by initiating mediation or negotiation after the insolvency application is filed,"the bench observed.
The decision reinforces the stringent interpretation of what qualifies as a pre-existing dispute under IBC jurisprudence. Operational creditors may rely on the absence of prior disputes when filing petitions, while debtors must raise objections before the claim crystallises.
Citations
- In re: Application under Section 9 IBC (2026) NCLT Delhi
