# In the matter of KEC International Ltd. vs Logic Eastern India Pvt. Ltd CA(AT)(Insolvency) 701-2018

> NCLAT judgment dated 2019-01-25. Citation: TCN-2019-NCLAT-00846. The appellant, KEC International Ltd., challenged an order dated August 29, 2018, passed by…

- **Court:** NCLAT
- **Order date:** 25 Jan 2019
- **Citation:** TCN-2019-NCLAT-00846
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kec-international-ltd-vs-logic-eastern-india-pvt-ltd-ca-72b0d39d

## Summary

### Background

The appellant, KEC International Ltd., challenged an order dated August 29, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, which rejected the appellant's application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The rejection was based on the existence of a dispute between the parties, as indicated in a notice of dispute from the respondent, Logic Eastern India Pvt. Ltd., regarding the amount claimed in the appellant's demand notice under Section 8 of the Code. Subsequently, a Corporate Insolvency Resolution Process was initiated against the respondent.

## Facts

KEC International Ltd. (the appellant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Logic Eastern India Pvt. Ltd. (the respondent). The Adjudicating Authority (National Company Law Tribunal) rejected the application on August 29, 2018, because there was a pre-existing dispute between the parties regarding the amount claimed in the demand notice issued under Section 8 of the Code. The respondent had issued a notice of dispute. Subsequently, a Corporate Insolvency Resolution Process was initiated against the respondent. The appellant filed a claim on January 14, 2019, which the Resolution Professional is collating and considering under the provisions of the I&B Code. The appellant appealed the Adjudicating Authority's order.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order rejecting the application under Section 9 of the …

**Ratio:** The court will not interfere with the impugned order if a corporate insolvency resolution

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**Reasoning:** The court reasoned that since a corporate insolvency resolution process had been

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**Interpretation:** This legal issue concerns the interplay between an application under Section 9

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**Application:** In this case, the court applied the ratio by not interfering with the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** KEC International…
- **Respondents:** Logic Eastern…

## Timeline

- **2018-08-29 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order rejecting the…
- **2018-11-13 — Matter Ta…**: The matter was taken up when notice was…

## 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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