When S.9 of IBC, 2016 can be invoked ? Answered in a Recent Decision
It has been held that Section 9 of Insolvency and Bankruptcy Code, 2016 cannot be triggered for any debt which amount falls below threshold limits or for debts which are steeped in disputes. In Section 9 proceedings, the Adjudicating Authority is not required to enter final adjudication with regard to existence of dispute between the parties regarding the operational debt but what has to be looked into is whether the defence has raised a plausible dispute which needs further adjudication by a competent court.
Lords Inn Hotels and Developers Pvt. Ltd v. Aaryaraj Club and Resorts LLP [2026] GCtR 31 (NCLAT)
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