VDS Plastics Pvt. Ltd., the Appellant (Operational Creditor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Pal Mohan Electronics (P) Ltd., the Respondent (Corporate Debtor). The Adjudicating Authority rejected the application because a dispute existed. The Appellant argued that the dispute was not genuine. A statutory notice for winding up under section 433(e) and 434(1)(a) of the Companies Act, 1956 was issued by the appellant to the respondent. The appellant claimed that goods and materials worth Rs.1,48,37,586/- were supplied to the Corporate Debtor, and a partial payment of Rs.57,56,610/- was received, leaving a balance of Rs.90,80,976/- outstanding.

VDS Plastics Pvt. Ltd., the Appellant (Operational Creditor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Pal Mohan Electronics (P) Ltd., the Respondent (Corporate Debtor). The Adjudicating Authority rejected the application because a dispute existed. The Appellant argued that the dispute was not genuine. A statutory notice for winding up under section 433(e) and 434(1)(a) of the Companies Act, 1956 was issued by the appellant to the respondent. The appellant claimed that goods and materials worth Rs.1,48,37,586/- were supplied to the Corporate Debtor, and a partial payment of Rs.57,56,610/- was received, leaving a balance of Rs.90,80,976/- outstanding.