Pre-existing Dispute Bars Section 9 Application Against Corporate Debtor: NCLAT Delhi

Sanam Fashion & Design Exchange Ltd. Vs Ktex Nonwovens Pvt. Ltd. (NCLAT Delhi) Sanam Fashion & Design Exchange Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against Ktex Nonwovens Pvt. Ltd. (hereinafter referred to as “Corporate Debtor”) under Section 9 of the Insolvency & Bankruptcy Code (IBC), 2016, seeking recovery of a USD 200,000 advance payment made for the purchase of goods that the Corporate Debtor failed to deliver. However, the Adjudicating Authority rejected the application, prompting an appeal from Sanam Fashion & Design Exchange Ltd. (he...