Rajat Saini & Anr vs Pret Study By Janak Fashions Pvt. Ltd

Rajat Saini & Anr. ...Appellant

Vs

Pret Study by Janak Fashions Private Limited. ....Respondent

Present: For Appellant: Mr. C. S. Gaurav Kumar, Advocate.

For Respondent:

ORDER

14.10.2019: 'M/s Pret Study by Janak Fashions Private Limited'

(Operational Creditor) filed application under Section 9 of the Insolvency and

Bankruptcy Code, 2016 (for short 'I&B Code') for initiation of Corporate

Insolvency Resolution Process against 'M/s Mars Hospitality and Retail Private

Limited' (Corporate Debtor). The said application having admitted by the

Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench by

order dated 3rd September, 2019, the present appeal has been preferred by

Mr. Rajat Saini and Mr. Satbir Singh Saini, Directors of the Corporate Debtor.

2. Learned counsel for the Appellant submits that there is a pre-existing

dispute. However, from the record we find that no document has been produced

or was produced before the Adjudicating Authority to suggest that there is a pre-

existing dispute in regard to goods supplied by 'M/s Pret Study by Janak

Fashions Private Limited' (Operational Creditor) to 'M/s Mars Hospitality and -2-

Retail Private Limited' (Corporate Debtor). The only ground taken is that the

terms of the agreement were violated but no record has been placed by the

Appellant to suggest that prior to issuance of notice under Section 8(1) of I&B

Code such issue was raised by the Corporate Debtor with the Operational

Creditor.

3. In absence of any pre-existing dispute, the Adjudicating Authority having

admitted the application under Section 9 and there being debt and default, we

find no reason to interfere with impugned order dated 3rd September, 2019. The

appeal is dismissed. No cost.

[Justice S. J. Mukhopadhaya] Chairperson

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

(Kanthi Narahari) Member (Technical) am/gc

Company Appeal (AT) (Insolvency) No. 1026 of 2019