In a Section 9 proceeding, Adjudicating Authority is not to enter into final adjudication with regard to existence of dispute between the parties regarding the operational debt – Raju Jagtap, Suspended Director of Insteel Engineers Pvt. Ltd. Vs. Jayesh Steel Pvt. Ltd. – NCLAT New Delhi
NCLAT held that keeping in mind that IBC bestows only summary jurisdiction upon the Adjudicating Authority and this Tribunal, once plausibility of a pre-existing dispute is shown, it is not required of them to make further detailed investigation. What has to be looked into is whether the defence raises a dispute which needs further adjudication by a competent court. It is well settled that in a Section 9 proceeding, the Adjudicating Authority is not to enter into final adjudication with regard to existence of dispute between the parties regarding the operational debt.
