# In the matter of Mr. Raghu Rama Krishna Raju Vs. Gandhar Oil refinery (India) Ltd. CA(AT)(Insolvency) 552 & 553-2018

> NCLAT judgment dated 2019-01-30. Citation: TCN-2019-NCLAT-00829. The case involves two company appeals (552 and 553 of 2018) filed against the admission of…

- **Court:** NCLAT
- **Order date:** 30 Jan 2019
- **Citation:** TCN-2019-NCLAT-00829
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-raghu-rama-krishna-raju-vs-gandhar-oil-refinery-9ea23e7f

## Summary

### Background

The case involves two company appeals (552 and 553 of 2018) filed against the admission of applications under Section 9 of the Insolvency and Bankruptcy Code, 2016. Gandhar Oil Refinery (India) Limited, an operational creditor, filed these applications against Ind-Barath Power Gencom Limited and Ind-Barath Thermal Power Limited, respectively, for initiation of corporate insolvency resolution process. The appeals challenge the orders dated 7th September, 2018, which admitted the applications. The appellant contends that a pre-existing dispute existed in both cases, rendering the Section 9 applications not maintainable. The operational creditor disputes this claim but acknowledges that the parties have settled their claims.

## Facts

Gandhar Oil Refinery (India) Limited, as an operational creditor, initiated corporate insolvency resolution processes against Ind-Barath Power Gencom Limited and Ind-Barath Thermal Power Limited by filing applications under Section 9 of the Insolvency and Bankruptcy Code, 2016. These applications were admitted by the Adjudicating Authority through orders dated September 7, 2018. The appellants challenged these orders, arguing that a pre-existing dispute existed before the applications were filed. Prior to the demand notices issued under Section 8(1) of the IBC, both Ind-Barath Power Gencom Limited (on September 27, 2017) and Ind-Barath Thermal Power Limited (on the same date) had issued notices to Gandhar Oil Refinery alleging deceit and disputing outstanding dues,

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Corporate Debtors (Ind-Barath Power Gencom …

**Ratio:** The legal principle is that the existence of a pre-existing dispute, meaning a dispute

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**Reasoning:** The court reasoned that the notices issued by the Corporate Debtors to the Operational

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**Interpretation:** The interpretation of 'pre-existing dispute' is crucial. It encompasses any

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**Application:** In this case, the court applied the principle by examining the notices

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Raghu Rama…
- **Respondents:** Ind-Barath Power…; Gandhar Oil…

## Timeline

- **2017-09-27 — Notice by Ind-Barath…**: Ind-Barath Powergencom Limited issued a notice to Gandhar Oil Refinery India Limited…
- **2017-10-25 — Demand Notice…**: Demand notice was issued…

## 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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