Indiana Gratings Pvt. Ltd vs Conceptual Equipments & Services Pvt. ...

Indiana Gratings Pvt. Ltd. ...Appellant

Versus

Conceptual Equipments & Services Pvt. Ltd. ...Respondent

Present:

For Appellant : Mr. Amar Dave and Ms. Aastha Mehta, Advocates

ORDER

27.07.2018 From the record we find that there was pre-existing dispute

prior to issuance of Demand Notice under Section 8(1) of the Insolvency and

Bankruptcy Code, 2016 (for short, 'the I&B Code') issued by the 'Operational

Creditor'. The Adjudicating Authority by impugned order dated 18th May, 2018

has taken note of the same while referring to the dispute relating to change of

make of the manufacturer as well of steel, is pending since 2nd June, 2015. The

dispute relating to weight difference and invoices, is pending since 4th May, 2015.

Learned counsel appearing on behalf of the appellant referred to letter

issued by the 'Corporate Debtor' dated 19th November, 2015 to submit that the

'Corporate Debtor' has accepted the claim but in the said letter the 'Corporate

Debtor' has made it clear that false invoices have been raised and false facts has

been recorded in the ledger account of the 'Financial Creditor', with a bad

intention to snatch away more amount illegally. In the said letter, it is also

informed that Rs.30,60,000 has already been paid by the 'Corporate Debtor'

which has not been taken into account.

-2-

Taking into consideration the fact that the 'Corporate Debtor' has raised

the dispute much prior to issuance of notice under Section 8(1) of the I&B Code,

we agree with the Adjudicating Authority that there is an 'existence of dispute',

and therefore application under Section 9 was not maintainable.

The appeal is accordingly dismissed. No cost.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice Bansi Lal Bhat ] Member (Judicial)

/ns/uk/

Company Appeal (AT) (Insolvency) No. 404 of 2018