The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that a Section 9 petition under the Insolvency and Bankruptcy Code, 2016 (Code) cannot be admitted when the operational creditor has used its control over the corporate debtor’s affairs to fabricate invoices and drag the company into insolvency on account of personal or matrimonial disputes pending between the creditor’s partners and the corporate debtor’s director.
Brief Facts:
Om Sai Moulds & Plactics (Appellant/Operational Creditor), filed a petition under section 9 of the Code for the recovery of ₹1.27 crore (inclusive of interest) against Pllastomax …
