# In the matter of Amrop India Private Limited vs. The Hi-Tech Gears Limited

> NCLAT judgment dated 2023-10-11. Citation: TCN-2023-NCLAT-00128. The case involves an appeal against the Adjudicating Authority's order rejecting a Section 9…

- **Court:** NCLAT
- **Order date:** 11 Oct 2023
- **Citation:** TCN-2023-NCLAT-00128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amrop-india-private-limited-vs-the-hi-tech-gears-limited-b0197fde

## Summary

### Background

The case involves an appeal against the Adjudicating Authority's order rejecting a Section 9 application filed by the Operational Creditor, Amrop India Private Limited, against the Corporate Debtor, Hi-Tech Gears Limited, for initiating Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority rejected the application based on the existence of pre-existing disputes between the parties. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for services rendered under two contracts. The Corporate Debtor, however, argued that there were deficiencies in the services provided and raised a counter-claim for damages.

## Facts

Amrop India Private Limited (Operational Creditor) entered into two contracts with Hi-Tech Gears Limited (Corporate Debtor) on 2018-02-12 and 2018-03-08 for filling up two vacancies. Amrop India Consultants Pvt. Ltd. (“AICPL”) raised four invoices for the services rendered. AICPL subsequently sold their business to Amrop India Pvt. Ltd., the present Appellant by entering into a Slump Sale Agreement with them. Amrop India Private Limited sent a letter on 2018-06-28 demanding payment of Rs.29,65,732/- from the Corporate Debtor. Hi-Tech Gears Limited replied on 2018-07-13 denying the outstanding amount and instead raised a counter-claim of Rs.137.53 lakh. Amrop India Private Limited sent a demand notice under Section 8 of IBC to Hi-Tech Gears Limited on 2018-07-30, to

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## Issues and analysis

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

**Ratio:** A pre-existing dispute, as defined under the IBC, is a dispute that exists before the

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**Reasoning:** The court examined the correspondence between the parties, including emails and letters,

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**Interpretation:** The existence of a genuine pre-existing dispute is a bar to the initiation of

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**Application:** In this case, the court found that the Corporate Debtor had raised concerns

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## Parties

- **Judges:** Barun M…
- **Appellants:** Amrop India…
- **Respondents:** Hi-Tech Gears…; The Hi-Tech Gears…

## Timeline

- **2018-02-12 — Contract…**: Corporate Debtor entered into a contract…
- **2018-03-08 — Contract…**: Corporate Debtor entered into a second…

## Legal provisions

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

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