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Can firms withhold payments to sanctioned suppliers without facing insolvency?

Can firms withhold payments to sanctioned suppliers without facing insolvency?

Can firms withhold payments to sanctioned suppliers without facing insolvency?



The issue has surfaced after the NCLT Ahmedabad, in a 26 March order, held that foreign sanctions cannot be used as a defence to avoid payment of dues to operational creditors such as suppliers and vendors.

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