NCLAT Dismisses Rashtriya Mill Mazdoor Sangh Insolvency Appeal

NCLAT upheld NCLT's dismissal of a Section 9 IBC application filed by Rashtriya Mill Mazdoor Sangh against National Textile Corporation Ltd.
The Tribunal found a genuine pre-existing dispute existed over Rs 44.96 Cr wage arrears, citing ongoing labour court proceedings and reconciliation efforts.
The ruling reinforces that IBC is not a debt recovery mechanism for disputed claims, especially when alternative forums are seized of the matter.