The National Company Law Appellate Tribunal (NCLAT) has set aside the initiation of Corporate Insolvency Resolution Process (CIRP) against OFB Tech Private Limited, citing the existence of a pre-existing dispute between the parties and records available with the National E-Governance Services Limited (NeSL).
In its order, the appellate tribunal overturned the decision of the National Company Law Tribunal (NCLT), which had earlier admitted an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 by an operational creditor.
Dispute Existed Prior to Insolvency Filing
The NCLAT observed that documents placed on record clearly indicated that disputes between the operational creditor and OFB Tech existed well before…