In section 9 IBC proceeding, the Adjudicating Authority is not to enter into final adjudication with regard to existence of dispute between the parties regarding the operational debt – Apavarga Trading Company Vs. Hazel Foods Pvt. Ltd. – NCLAT New Delhi
NCLAT held that it is well settled that in 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. What has to be looked into is whether the defence raises a dispute which needs further adjudication by a competent court.