A company which is solvent and has the ability to pay its debts cannot be dragged into insolvency | IBC Petition for claim of damages is not maintainable | An affidavit Section 9(3)(b) of IBC stating that no notice of dispute was given by Corporate Debtor is a mandatory requirement for Section 9 application – Identity Science Co. Ltd. Vs. Soanl Plasrub Industries Pvt. Ltd. – NCLT Mumbai Bench
Hon’ble NCLT Mumbai Bench held that:
(i) Even otherwise claim under IBC can only be filed with respect to debt amount which stands crystallized. The damages being claimed have also neither been adjudicated nor crystallized. Hence the petition under IBC claim of damages is not maintainable.
(ii) The Operational Creditor did not file an affidavit stating that no notice of dispute was given by the Corporate Debtor regarding the unpaid operational debt, which is a mandatory requirement for a petition under Section 9 of the IBC.
(iii) The insolvency process is meant for companies that are in financial distress and cannot meet their financial obligations, not for solvent companies with disputed claims.