# In the matter of Asian Diamond BVBA vs. DA Jewels Pvt. Ltd.

> NCLAT judgment dated 2023-12-18. Citation: TCN-2023-NCLAT-00020. The case involves an appeal against the rejection of a Section 9 application filed by Asian…

- **Court:** NCLAT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLAT-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/asian-diamond-bvba-vs-da-jewels-pvt-ltd-aff4f572

## Summary

### Background

The case involves an appeal against the rejection of a Section 9 application filed by Asian Diamond BVBA (Appellant) against DA Jewels Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority dismissed the application based on the existence of a pre-existing dispute. The Appellant claimed payment towards certain diamonds handed over to the Corporate Debtor. The Corporate Debtor refuted the claim, stating that the amount was not payable as they had already handed over diamonds in lieu of payment and possessed receipts for the same. The Adjudicating Authority relied on emails presented by the Corporate Debtor to conclude that a plausible dispute existed between the parties.

## Facts

Asian Diamond BVBA (Appellant) filed a Section 9 application against DA Jewels Pvt. Ltd. (Corporate Debtor) claiming payment for diamonds. The Adjudicating Authority dismissed the application due to a pre-existing dispute. The Corporate Debtor claimed to have already paid for the diamonds by handing over other diamonds and provided receipts. The Corporate Debtor presented emails, including one dated 03.05.2019, to support their claim of a dispute. The Appellant argued that the email was not addressed to them. The Corporate Debtor's email mentioned that the entire dispute was settled on 28.1.2019 by handing over polished diamonds worth USD 1,15,806, and a Jangad receipt was signed. The email also mentioned other incidents of the Appellant's representatives taking away

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the Section 9 application based on the …

**Ratio:** A Section 9 application can be rejected if there is a pre-existing dispute between the

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**Reasoning:** The court reasoned that the Adjudicating Authority rightly rejected the Section 9

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**Interpretation:** The existence of a 'dispute' is interpreted broadly to include any disagreement

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**Application:** The court applied the ratio to the facts by examining the emails and Jangad

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Asian Diamo…
- **Respondents:** DA Jewels Pvt.…

## Timeline

- **2019-01-28 — Alleged Dispute…**: Corporate Debtor claims the entire dispute was settled by handing over polished diamonds…
- **2019-02-21 — Appellant's…**: Email sent by the…

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