Admission of insolvency application on basis of partly admitted claim by debtor is not permissible when debtor willing to pay such admitted amount but disputes balance claim. Adjudication on existence of debt beyond admitted debt is necessary for admitting application.

 

[Compack Enterprises India (P) Ltd. v. Jitendra Impex (P) Ltd., (2023) 8 SCC 742]

  

Case Comment:

in the present circumstance when the claim as put forth by the respondent is to the tune of Rs. 1,81,45,943/- after referring to the earlier deductions and the appellant herein is presently contending that only a sum of Rs. 22,56,833/- was due and was offered to be paid but declined to be received by the respondent, the said amount itself was made the basis by the NCLAT to arrive at its conclusion that in any event, the due admitted is more than Rs. 1,00,000/-. The said reasoning in this context would not be justified inasmuch the appellant having admitted that the amount of Rs. 22,56,833/- was due, were also ready to pay the said amount. According to them that was the only amount due. Therefore, what was required of the NCLAT was to arrive at the conclusion as to whether any amount over and above Rs. 22,56,833/- was due and if the conclusion was to the effect that the amount above Rs. 22,56,833/- was due, the NCLAT would have been justified in remitting the matter to the NCLAT.

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