The National Company Law Appellate Tribunal (NCLAT) New Delhi has upheld the initiation of Corporate Insolvency Resolution Process (CIRP) against Gemini Engi. Fab. Pvt. Ltd. and held that the Corporate Debtor could not rely on alleged pre existing disputes after admitting an undisputed operational debt through its own consequence sheet and correspondence.
The issue arises from multiple purchase orders issued between December 2021 and June 2022 for supply of forgings and tube sheets. Kisaan Steels claimed an operational debt exceeding ₹6.13 crore towards unpaid invoices. The Corporate Debtor alleged delayed deliveries, defective goods and consequential losses suffered in projects involving end-users contending that…