Epc Contracts India Pvt. Ltd vs Regenesis Technologies India Pvt. Ltd

EPC Contracts India Pvt. Ltd. ...Appellant

Vs

Regenesis Technologies India Pvt. Ltd. ....Respondent

Present: For Appellant: Yash Tandon, Advocate. For Respondent: ORDER

21.11.2019: Having heard leaned counsel for the Appellant and case for

condonation of delay being carved out, we condone delay of 8 days in preferring

the appeal. I.A. No. 3839 of 2019 stands disposed of.

2. Application filed by the Appellant - 'EPC Contracts India Pvt. Ltd.' under

Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to

as 'I&B Code') against the Corporate Debtor - 'Regenesis Technologies India

Pvt. Ltd.' has been rejected by the Adjudicating Authority (National Company

Law Tribunal), New Delhi Bench III on the ground that there was a pre-existing

dispute. For arriving at this conclusion learned Adjudicating Authority has

relied upon two emails exchanged between the Operational Creditor and the

Corporate Debtor prior to issuance of the demand notice.

3. This fact has not been disputed by learned counsel for the Appellant,

who submits that there has been acknowledgment of debt by the Respondent

subsequently.

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4. It is well settled by now that Corporate Insolvency Resolution Process is

not a recovery proceeding and in the event of there being a pre-existing

dispute, the course open to the Operational Creditor is to approach the

competent forum for recovery of the outstanding debt. Once pre-existence of

dispute is there and it is brought to the notice of the Operational Creditor by

the Corporate Debtor before service of demand notice in terms of Section 8(1) of

the I&B Code or in reply thereof, the issue gets out of the clutches of the I&B

Code.

5. There being no merit in the instant appeal, the same is dismissed.

[Justice Bansi Lal Bhat] Member (Judicial)

[Justice Venugopal M.] Member (Judicial) am/gc

Company Appeal (AT) (Insolvency) No. 1346 of 2019