Application for initiation of CIRP by operational creditor cannot be admitted if debit is disputed

S.S. Engineers Vs Hindustan Petroleum Corporation Ltd. (Supreme Court of India)

Held that operational creditor can trigger CIRP process only in case of undisputed debt and default in payment thereof. However, if the debit is disputed, the application of the operational creditor for CIRP process cannot be admitted.

Facts-

The main question involved here is whether the Adjudicating Authority (NCLT) correctly admitted an application filed under section 9 of the Insolvency and Bankruptcy Code by the operational creditor for initiation of Corporate Insolvency Resolution Process.

Conclusion-

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