# In the matter of Ami Alloys Vs. Hi Tech Butterfly Valves Pvt. Ltd. CA(AT)(Ins) No. 1388 of 2019

> NCLAT judgment dated 2019-12-02. Citation: TCN-2019-NCLAT-00072. The Appellant, Ami Alloys (Operational Creditor), filed a Summary Suit No. 117 of 2016…

- **Court:** NCLAT
- **Order date:** 2 Dec 2019
- **Citation:** TCN-2019-NCLAT-00072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ami-alloys-vs-hi-tech-butterfly-valves-pvt-ltd-ca-e964a8bb

## Summary

### Background

The Appellant, Ami Alloys (Operational Creditor), filed a Summary Suit No. 117 of 2016 against Hi Tech Butterfly Valves India Pvt. Ltd. (Corporate Debtor) before the Civil Judge Ahmedabad. Subsequently, the Appellant issued a notice under Section 8(1) and filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.

## Facts

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.

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the I&B Code is maintainable when there is a …

**Ratio:** An application under Section 9 of the I&B Code is not maintainable if there is a

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**Reasoning:** The Adjudicating Authority rightly held that the application under Section 9 of the

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**Interpretation:** Section 9 of the I&B Code requires that there should be no pre-existing

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**Application:** In this case, the existence of Summary Suit No. 117 of 2016, filed before the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Ami Al…
- **Respondents:** Hi Tech Butterfly…

## Timeline

- **2016-01-01 — Summary Sui…**: Ami Alloys filed Summary Suit No. 117 of 2016 against Hi Tech Butterfly Valves India Pvt.…
- **N/A — Notice under Section…**: Ami Alloys issued notice under Section 8(1) to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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