# In the matter of Avalon Sports and Media Vs. Intex Technologies India Ltd. CA(AT)(Ins)No. 1114-2019

> NCLAT judgment dated 2019-10-23. Citation: TCN-2019-NCLAT-00193. Avalon Sports and Media filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLAT
- **Order date:** 23 Oct 2019
- **Citation:** TCN-2019-NCLAT-00193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/avalon-sports-and-media-vs-intex-technologies-india-ltd-ca-5b883ebe

## Summary

### Background

Avalon Sports and Media filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Intex Technologies India Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process. The Adjudicating Authority (National Company Law Tribunal, Bench – VI, New Delhi) rejected the application, leading to the present appeal. The appellant issued a demand notice under Section 8(1) of the I&B Code, to which the corporate debtor replied, pointing out the pre-existence of a dispute regarding the alleged claim and demanded payment of Rs.47,68,500/- for the loss of Interest due to delay in payments by 'Oxigen' along with commission already paid to the Appellant.

## Facts

Avalon Sports and Media (Appellant) initiated a Corporate Insolvency Resolution Process (CIRP) against Intex Technologies India Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The basis for the application was a claim for Rs.47,68,500/- related to loss of interest due to delayed payments by 'Oxigen', along with commission already paid. The Corporate Debtor contested the claim, asserting a pre-existing dispute. The Adjudicating Authority (National Company Law Tribunal) noted email exchanges between the parties indicating a dispute over the terms and conditions of the agreement and the refund sought. The Corporate Debtor had disputed the claim in an email dated 3rd December, 2018, arguing that the payment of the commission was in

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute bars the initiation of CIRP under Section 9 of

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**Reasoning:** The Adjudicating Authority rightly rejected the application under Section 9 on the ground

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**Interpretation:** Section 9 of the I&B Code allows for the initiation of CIRP by an

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**Application:** In this case, the Corporate Debtor had raised disputes regarding the claim in

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## Parties

- **Judges:** S.J. Mukhop…; Venugop…; +1 more
- **Appellants:** Avalon Sports and…
- **Respondents:** Intex Technologies…

## Timeline

- **2018-02-13 — Email Exc…**: Emails were exchanged…
- **2018-10-09 — Email Exc…**: Emails were exchanged…

## 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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