NCLAT Upholds Dismissal of JS Steel Insolvency Petition

NCLAT dismissed JS Steel Co Ltd's appeal against NCLT Ahmedabad's order rejecting its Section 9 IBC application against Amod Stampings Pvt Ltd.
The Tribunal upheld the finding of a genuine pre-existing dispute regarding defective goods supplied under a USD 353,534.50 invoice.
The ruling reaffirms the Mobilox principle that CIRP cannot be initiated if a plausible dispute exists, irrespective of its merits.
JS Steel remains free to pursue other legal remedies for recovery of the disputed operational debt.