As per the case facts an ex-director of a company appealed the NCLAT's decision which had affirmed the NCLT's admission of an insolvency application under the IBC The appellant argued ... that there was a pre-existing dispute concerning the supply of allegedly inferior quality coal which should have prevented the admission of the insolvency application The question arose whether the appellant had successfully established the existence of a pre-existing dispute as defined by the Supreme Court's jurisprudence thereby making the insolvency application inadmissible under Section of the IBC Finally the Supreme Court allowed the appeal setting aside the impugned order and rejecting the application filed under Section The Court concluded that the NCLAT had erred regarding the pre-existing dispute and confirmed that the appellant had indeed raised such a dispute within the meaning of the IBC

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