The National Company Law Appellate Tribunal (NCLAT) has upheld the National Company Law Tribunal’s (NCLT) decision dismissing an insolvency application filed under Section 9 of the Insolvencyand Bankruptcy Code, 2016 (IBC) by Morex Corporation Limited against Jindal Poly Films Ltd. The appellate tribunal found the existence of a genuine pre-existing dispute between the parties regarding an aborted export transaction during the COVID-19 lockdown period.
The appellant, Morex Corporation Ltd., had filed the application seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Jindal Poly Films, alleging non-refund of advance payment totaling ₹3 crores for a consignment of non-woven fabric. The …