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SC Clarifies Scope of Pre-Existing Dispute for Section 9 IBC

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Judgment dated 10.12.2025 of the Supreme Court in Civil Appeal No.12261 of 2024 of M/s. Saraswati Wire and Cable Industries   Vs. Mohammad Moinuddin Khan and others

SC Clarifies Scope of Pre-Existing Dispute for Section 9 IBC

SC Strengthening Creditor Rights under Section 9 IBC

Operational Creditors Protected – SC on Pre-Existing Dispute in Insolvency Proceedings

Section 9 IBC – Genuine Disputes Must Be Proven, Not Fabricated

Applying this legal standard to the case on hand we have no hesitation in holding that the defence of pre-existing disputes sought to be put forth by the CD was mere moonshine and had no credible basis or foundation. There was no dispute worth the name existing as on the date of issuance of the demand notice by the firm warranting the withholding of the operational debt due and payable by the CD. The attempt to project such pre-existing disputes was mere bluster and did not have the effect of non-suiting the firm.

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