The Ahmedabad bench of the National Company Law Tribunal (NCLT) held that under Section 9(5) of the IBC, 2016, a dispute limited to interest does not amount to a pre-existing dispute and therefore does not bar initiation of the Corporate Insolvency Resolution Process.
The present application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the operational creditor, Mr Mukeshkumar Shah, Proprietor of M/s Radhey Traders, against the corporate debtor, Synergy Food and Agro Processors Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP).
The operational creditor is engaged in the trading of agricultural products in the District of Aravalli and has supplied wheat…