Neither Adjudicatory nor Appellate Tribunal is vested with the competent jurisdiction either to enter into the realm of investigating contractual disputes or to determine the tenability of the claim amount arising out of contractual terms | Where Operational Creditor seeks to initiate insolvency process against a Corporate Debtor, it can only be done in clear cases where no real dispute exists – In Style Fashion Vs. Aditya Birla Fashion and Retail Ltd. – NCLAT New Delhi

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.

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