Standard of Pre-Existing Dispute under IBC is not Equivalent to Principle of ‘Preponderance of Probability’

Rajratan Babulal Agarwal Vs Solartex India Pvt. Ltd. (Supreme Court of India) In Mobilox Innovations Private Limited v. Kirusa Software Private Limited (2018) 1 SCC 353, this Court took the view that one of the objects of the IBC in regard to operational debts is to ensure that the amount of such debts which is usually smaller than the financial debts does not enable the operational creditor to put the corporate debtor into the insolvency resolution process prematurely. It is further declared that it is for this reason that it is enough that a dispute exists between the parties. It is further ...