The NCLAT Bench of Justice Rakesh Kumar Jain, Member (Judicial) and Arun Baroka, Member (Technical) has held that the dispute regarding payment of GST dues is not a “pre-existing dispute” between the parties that would preclude the initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC).
Brief Facts
The Appellant (or “Corporate Debtor”), M/s Ahuja Cotspin Private Limited, incorporated under the Companies Act, 1956, was involved in the manufacturing of cotton yarn. Respondent No. 1 (or “Operational Creditor”), Aggarwal Enterprises, a sole proprietorship engaged in the trading and supply of cotton, raised multiple invoices between August 13,…
