In Brief
The appellant, a transmission authority, and respondent, a supplier, had contractual disputes leading to arbitration. The arbitral tribunal rejected the respondent's claims on Invoices 1–57 as time-barred. When attempts to execute these rejected claims failed, the respondent sought to invoke the Insolvency and Bankruptcy Code, filing under Section 9 claiming unpaid operational debt. The Supreme Court held that the IBC cannot serve as an alternative recovery forum for disputed claims. Where disputes have been adjudicated or genuinely exist, CIRP cannot be initiated. The court allowed the appeal and set aside the NCLAT order, confirming that the NCLT's dismissal of the insolvency petition was justified."
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