# In the matter of Eastern Electrodes & Coke Pvt. Ltd. Vs. Bhaskar Shrachi Alloys Ltd. CA(AT)(Ins) No. 931 of 2019

> NCLAT judgment dated 2020-02-05. Citation: TCN-2020-NCLAT-00452. The case involves an appeal against the rejection of an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 5 Feb 2020
- **Citation:** TCN-2020-NCLAT-00452
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/eastern-electrodes-coke-pvt-ltd-vs-bhaskar-shrachi-alloys-ltd-ca-a0077b2c

## Summary

### Background

The case involves an appeal against the rejection of an application under Section 9 of the Insolvency and Bankruptcy Code (IBC). The appellant, an operational creditor, claimed to have supplied Electro Carbon Paste (ECP) and Tamping Paste to the corporate debtor in 2014. The appellant alleged that the supplies were duly received and part payments were made. The corporate debtor, however, claimed that the quality of the supply was inferior, leading to problems. The Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) rejected the application, citing a pre-existing dispute and the claim being time-barred.

## Facts

Eastern Electrodes & Coke Pvt. Ltd. (Appellant) claimed to have supplied Electro Carbon Paste (ECP) and Tamping Paste to Bhaskar Shrachi Alloys Ltd. (Corporate Debtor) in 2014. The Appellant raised invoices for the supplies made. The Appellant claimed that the supplies were duly received by the Corporate Debtor and part payments were also made. The Corporate Debtor claimed that the quality of supply was inferior leading to the problem of tip breaking. Despite e-mails and letters, the dues were not cleared. The Appellant sent a notice on 01.02.2018 under Section 8 of IBC claiming debt due. The Respondent sent a reply on 12.02.2018 raising a dispute regarding quality. The Appellant filed an application under Section 9 of IBC on 29.03.2018 before the Adjudicating

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## Issues and analysis

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

**Ratio:** A pre-existing dispute, if genuine and not a mere after-thought to avoid insolvency

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**Reasoning:** The Adjudicating Authority and the NCLAT considered the e-mails exchanged between the

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**Interpretation:** The interpretation of 'dispute' under the IBC is broad and encompasses any

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**Application:** In this case, the e-mails exchanged between the Appellant and the Corporate

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## Parties

- **Judges:** A.I.S. C…; Anant Bijay…; +1 more
- **Appellants:** Eastern Electrodes…
- **Respondents:** Bhaskar Shrachi…

## Timeline

- **2014-01-01 — Supplies and…**: Appellant supplied Electro Carbon Paste (ECP) and Tamping Paste to the Corporate Debtor…
- **2018-02-01 — Section 8…**: Appellant sent a notice under…

## 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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