# In the matter of Agarwal Coal Corporation Pvt. Ltd. Vs. Nilkanth Concast Pvt. Ltd.,Company Appea (AT)(Ins)No. 723 of 2021

> NCLAT judgment dated 2022-12-05. Citation: TCN-2022-NCLAT-00055. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an…

- **Court:** NCLAT
- **Order date:** 5 Dec 2022
- **Citation:** TCN-2022-NCLAT-00055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/agarwal-coal-corporation-pvt-ltd-vs-nilkanth-concast-pvt-ltdcompany-appea-1c470b30

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an order dated 09.02.2021 passed by the National Company Law Tribunal, Ahmedabad Bench, dismissing an application filed under Section 9 of the Code. The application was dismissed primarily on the ground of maintainability due to a pre-existing dispute between the parties.

## Facts

Agarwal Coal Corporation Pvt. Ltd. (Appellant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Nilkanth Concast Pvt. Ltd. (Respondent) for an outstanding operational debt of Rs. 78,79,452/-. The Appellant claimed to have supplied Indonesian imported coal to the Respondent based on offers dated 05.07.2018 and 10.07.2018. The Respondent placed purchase orders dated 07.07.2018 and 10.07.2018. The Appellant supplied coal between 07.07.2018 and 02.08.2018. Disputes arose regarding the quality of the coal, with the Respondent raising concerns about the calorific value and other specifications. The Respondent made payments totaling Rs. 1,23,90,000/- against the outstanding dues. The Appellant issued demand notices under Section 8 of

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing the application under Section 9 of the …

**Ratio:** An application under Section 9 of the IBC is not maintainable if there is a pre-existing

…

**Reasoning:** The Adjudicating Authority found that there was a pre-existing dispute regarding the

…

**Interpretation:** The existence of a genuine dispute prior to the issuance of a demand notice

…

**Application:** In this case, the Respondent had raised concerns about the quality of coal

…

## Parties

- **Judges:** Rakesh…; Ashok Kumar…
- **Appellants:** Agarwal Coal…
- **Respondents:** Nilkanth Concast…
- **Advocates:** Sumesh D…; Vatsala…; +7 more

## Timeline

- **2018-07-05 — Appellant's…**: Appellant offered to supply Indonesian…
- **2018-07-07 — Respondent's Purchase…**: Respondent placed a purchase…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/agarwal-coal-corporation-pvt-ltd-vs-nilkanth-concast-pvt-ltdcompany-appea-1c470b30