In Brief
Kay Bouvet Engineering challenged a ruling that allowed an insolvency petition by Overseas Infrastructure Alliance (Overseas). Overseas had paid USD 10.62 Million to Kay Bouvet as advance payment under a tripartite agreement, but after the contract was terminated and a new direct contract was entered between Mashkour and Kay Bouvet, Overseas demanded refund of the advance payment. Kay Bouvet disputed the claim, asserting the payment was made on behalf of Mashkour and was adjusted in the new contract. The Supreme Court held that the existence of a genuine, non-spurious dispute bars insolvency proceedings. The Court found Kay Bouvet's dispute had substantial documentary support, and therefore the National Company Law Tribunal was correct in rejecting Overseas' insolvency petition.
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