Kjmc Corporate Advisors (India) Ltd vs India Steel Works Ltd

IN THE MATTER OF: KJMC Corporate Advisors (India) Ltd. ...Appellant Vs India Steel Works Ltd. ....Respondent

Present: For Appellant: Mr. Vipul Ganda and Ms. Shreya Jain, Advocates. For Respondent: Mr. Rakesh Taneja, Ms. Jaikriti S. Jadeja, Ms. Anne Mathew and Mr. Saurabh Chaudhary, Advocates.

ORDER

23.04.2019: This appeal has been preferred by the Appellant (Operational

Creditor) against order dated 30th July, 2018 passed by the Adjudicating

Authority (National Company Law Tribunal), Mumbai Bench whereby the

application under Section 9 preferred by the Appellant has been rejected on the

ground of pre-existing dispute and res-judicata.

2. Earlier on 27th September, 2018, when the matter was taken up, learned

counsel for the Appellant submitted that there is no pre-existing dispute between

the parties and the question of application of principle of res-judicata does not

arise.

3. On notice the Respondent has appeared and referred to letter dated 14th

July, 2015 (at page 435, Volume III of the appeal) wherein pursuant to letter

dated 2nd July, 2015 and Provisional Debt Note dated 16th June, 2015 for -2-

Rs.1.38,51,000/-, the Corporate Debtor intimated the Operational Creditor that

there was no any understanding or mandate or any oral commitment from their

end for payment of any professional fees to KJMC Corporate Advisors (India) Ltd.

i.e. Appellant herein. From the said letter it is clear that there is a pre-existing

dispute about the amount claimed by the Appellant.

4. Learned counsel appearing on behalf of the Appellant submits that

subsequently they have admitted the dues but that cannot be a ground to

entertain application under Section 9 of IBC, which can be decided by competent

court in view of aforesaid letter.

5. We find no merit in this appeal. It is accordingly dismissed. No costs.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice A. I. S. Cheema] Member (Judicial)

(Kanthi Narahari) Member (Technical) am/gc

Company Appeal (AT) (Insolvency) No. 593 of 2018