In Brief
Kay Bouvet Engineering Ltd challenged the NCLAT's decision directing the NCLT to admit an insolvency petition filed by Overseas Infrastructure Alliance under Section 9 of the IBC. The dispute involved an advance payment of Rs. 47,12,10,000 paid by Overseas to Kay Bouvet, which Kay Bouvet contended was received on behalf of Mashkour Sugar Company and later adjusted against a new direct contract. The Supreme Court held that the NCLT correctly rejected the petition after finding a genuine dispute existed. The Court ruled that when a corporate debtor raises a genuine, non-spurious dispute regarding an operational debt claim, the adjudicating authority must reject the application under Section 9(5)(ii)(d) of the IBC, allowing the appeal and setting aside the NCLAT's order.
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