Ami Alloys, the Operational Creditor, initiated a Summary Suit No. 117 of 2016 against Hi Tech Butterfly Valves India Pvt. Ltd., the Corporate Debtor, in the court of Civil Judge Ahmedabad. Following this, Ami Alloys issued a notice under Section 8(1) and subsequently filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority determined that the Section 9 application was not maintainable due to a pre-existing dispute and a pending suit. The Appellant argued that the suit was filed before the IBC came into effect. The key fact is the existence of a pre-existing dispute and a pending suit before the application under Section 9 of the IBC was filed.

Ami Alloys, the Operational Creditor, initiated a Summary Suit No. 117 of 2016 against Hi Tech Butterfly Valves India Pvt. Ltd., the Corporate Debtor, in the court of Civil Judge Ahmedabad. Following this, Ami Alloys issued a notice under Section 8(1) and subsequently filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority determined that the Section 9 application was not maintainable due to a pre-existing dispute and a pending suit. The Appellant argued that the suit was filed before the IBC came into effect. The key fact is the existence of a pre-existing dispute and a pending suit before the application under Section 9 of the IBC was filed.