The Supreme Court on Wednesday (July 8) refused to interfere with the National Company Law Appellate Tribunal (NCLAT) order rejecting an ₹85-crore insolvency petition against Essar Power Gujarat Ltd. on the ground that a pre-existing dispute exists between the parties.
A partial court working days bench of Justice Nongmeikapam Kotiswar Singh and Justice K. Vinod Chandran dismissed the appeal against the NCLAT judgment, stressing that insolvency proceedings by an operational creditor under the Insolvency and Bankruptcy Code (IBC) cannot be invoked as a debt recovery mechanism where a genuine pre-existing dispute exists between the parties.
The Appellant-operational creditor claimed that Essar Power Gujarat owed it approximately ₹85…