Case Law Analysis
|National Company Law Appellate Tribunal
IBC Section 9 | Pending Labour Disputes Over Wage Claims Constitute Pre-Existing Dispute, Bar CIRP Initiation : NCLAT
NCLAT rules that labour proceedings disputing wage quantum, even if liability is partially admitted, qualify as a pre-existing dispute under IBC Section 9, preventing Corporate Insolvency Resolution Process initiation. This reinforces the bar on operational creditors using CIRP to bypass ongoing labour adjudication, impacting trade unions and government-owned corporate debtors.