It is not the object of the IBC that CIRP should be initiated to penalize solvent companies for non-payment of disputed dues claimed by an Operational Creditor – M/s Shree Satya Industries Vs. M/s Windsor Machines Ltd. – NCLT Mumbai Bench
The Hon’ble Supreme Court recently in M/s. S. S. Engineers V/s Hindustan Petroleum Corporation Ltd. (2022) ibclaw.in 92 SC held that if the debt is disputed, the application of the Operational Creditor for initiation of CIRP must be dismissed – It is not the object of the IBC that CIRP should be initiated to penalize solvent companies for non-payment of disputed dues claimed by an Operational Creditor. Applying the above principles laid down by the Hon’ble Supreme Court in the above judgement to the present case on hand, this bench is of the considered opinion that there are no merits in the above Application and the above Application is liable to be rejected on both the grounds of “maintainability” and “pre-existing disputes” between the parties. Accordingly, the above Company Petition is dismissed.
