# In the matter of Harish Bagla Vs. Agarwal Industries Pvt. Ltd. & 4 Ors. CA(AT)(Insolvency)102-2019

> NCLAT judgment dated 2019-02-11. Citation: TCN-2019-NCLAT-00778. Agarwal Industries Pvt. Ltd., the Operational Creditor, filed an application under Section 9…

- **Court:** NCLAT
- **Order date:** 11 Feb 2019
- **Citation:** TCN-2019-NCLAT-00778
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/harish-bagla-vs-agarwal-industries-pvt-ltd-4-ors-ca-d0e40b60

## Summary

### Background

Agarwal Industries Pvt. Ltd., the Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code (I&B Code) for initiating the Corporate Insolvency Resolution Process against Amit Feeds Limited, the Corporate Debtor. The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata, admitted the application via an order dated 15.01.2019. Subsequently, the Director/Shareholders of the Corporate Debtor preferred an appeal against this order.

## Facts

Agarwal Industries Pvt. Ltd. (Operational Creditor) initiated Corporate Insolvency Resolution Process (CIRP) against Amit Feeds Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code (I&B Code). The Adjudicating Authority admitted the application on 15.01.2019. The Director/Shareholders of the Corporate Debtor appealed the admission order. During the appeal, the Appellant argued the existence of pre-existing disputes, supported by a letter dated 10.04.2017. The parties reached a settlement on 08.02.2019, with a demand draft of Rs. 20,50,000/- prepared for payment to the Operational Creditor. The Committee of Creditors had not yet been constituted. The Operational Creditor's Constituted Attorney confirmed the settlement. The existence of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order admitting the application for Corporate Insolvency …

**Ratio:** The existence of a pre-existing dispute between the operational creditor and the

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**Reasoning:** The court considered the appellant's argument that pre-existing disputes existed,

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**Interpretation:** The interpretation of Section 9 of the I&B Code requires the Adjudicating

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**Application:** In this case, the existence of a pre-existing dispute, as evidenced by the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Harish…
- **Respondents:** Amit Feeds…; Agarwal Industries…

## Timeline

- **2017-04-10 — Pre-existing Dispute…**: Appellant intimated…
- **2019-01-15 — Application A…**: Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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