# In the matter of Amit Wadhwani Vs.
M/s Global Advertisers & Anr. Company Appeal (AT)(Insolvency) No.616/2021

> NCLAT judgment dated 2022-07-05. Citation: TCN-2022-NCLAT-00392. The case involves an appeal against an order dated 02.08.2021 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLAT-00392
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amit-wadhwani-vs-ms-global-advertisers-anr-company-appeal-5f40b2f1

## Summary

### Background

The case involves an appeal against an order dated 02.08.2021 passed by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench IV, Mumbai, which initiated Corporate Insolvency Resolution Process (CIRP) against M/s Sai Estate Consultants Chembur Pvt Ltd ('Corporate Debtor') based on a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by M/s Global Advertisers, an Operational Creditor. The Operational Creditor claimed outstanding dues for advertisement services provided to the Corporate Debtor. The Corporate Debtor contested the initiation of CIRP, arguing that a pre-existing dispute existed regarding the amount and quality of services provided, necessitating a reconciliation of accounts. The Appellant, a suspended board

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## Facts

M/s Global Advertisers (Operational Creditor) provided advertisement services to M/s Sai Estate Consultants Chembur Pvt Ltd (Corporate Debtor). The Operational Creditor raised 30 invoices aggregating to Rs. 4,74,55,683/- for services rendered between 10.03.2017 and 29.06.2019. The Corporate Debtor made part payments totaling Rs. 2,72,02,520/- and paid TDS amounting to Rs. 3,96,540/-. The Operational Creditor claimed an outstanding principal sum of Rs. 1,98,47,520/- plus interest. The Corporate Debtor contended that there was an understanding that payments would be made on a 'payable when able' basis and that reconciliation of accounts was necessary before payment. The Corporate Debtor requested reconciliation of accounts in letters dated 20th February 2020 and 14th

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Corporate Debtor and the Operational Creditor …

**Ratio:** The existence of a pre-existing dispute, as defined under Section 5(6) of the IBC, bars

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**Reasoning:** The NCLAT reasoned that the correspondence between the parties, particularly the

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**Interpretation:** The court interpreted the concept of 'pre-existing dispute' under the IBC,

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**Application:** The NCLAT applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Rakesh…; Ashok Kumar…
- **Appellants:** Amit Wad…
- **Respondents:** M/s Sai Estate…; M/s Global…

## Timeline

- **2017-03-10 — Advertisement Services…**: The Operational Creditor started providing…
- **2019-06-29 — Advertisement Services…**: The Operational Creditor stopped providing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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