# In the matter of Amit Singh Visen Vs Singla Fabrics

> NCLAT judgment dated 2023-08-10. Citation: TCN-2023-NCLAT-00289. The case involves an appeal against an order by the Adjudicating Authority. The Appellant's…

- **Court:** NCLAT
- **Order date:** 10 Aug 2023
- **Citation:** TCN-2023-NCLAT-00289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amit-singh-visen-vs-singla-fabrics-a5966a1f

## Summary

### Background

The case involves an appeal against an order by the Adjudicating Authority. The Appellant's counsel argues that the Adjudicating Authority should not have admitted a Section 9 application due to a pre-existing dispute raised by the Corporate Debtor in response to a legal notice issued by the Operational Creditor. The Corporate Debtor had replied to the legal notice on 2019-11-01, prior to the Demand Notice dated 2019-11-25.

## Facts

The Appellant filed an appeal against an order of the Adjudicating Authority. Prior to the issuance of a Demand Notice dated 2019-11-25, the Corporate Debtor replied to a legal notice issued by the Operational Creditor on 2019-11-01. The Appellant argues that this reply clearly raised a dispute, which should have prevented the Adjudicating Authority from admitting a Section 9 application. The Adjudicating Authority admitted the Section 9 application, ignoring the pre-existing dispute. The Appellant is required to provide the email address and mobile number of the Respondents to the Office of the Registry.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 9 application despite the …

**Ratio:** The ratio is based on the principle that a Section 9 application should not be admitted

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**Reasoning:** The court's reasoning is that if a dispute was already raised by the Corporate Debtor

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**Interpretation:** The interpretation revolves around understanding what constitutes a 'dispute'

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**Application:** The application of the ratio and reasoning to the facts involves determining

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Amit Singh…
- **Respondents:** M/s. Singla…

## Timeline

- **2019-11-01 — Corporate Debto…**: The Corporate Debtor replied to the legal…
- **2019-11-25 — Demand Noti…**: Date of the Demand…

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