# In the matter of NTT Data Business Solutions Pvt. Ltd. vs. Trident Ltd.

> NCLAT judgment dated 2023-09-29. Citation: TCN-2023-NCLAT-00154. This case involves an appeal against an order dismissing a Section 9 application filed by the…

- **Court:** NCLAT
- **Order date:** 29 Sept 2023
- **Citation:** TCN-2023-NCLAT-00154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ntt-data-business-solutions-pvt-ltd-vs-trident-ltd-aa17c5a7

## Summary

### Background

This case involves an appeal against an order dismissing a Section 9 application filed by the Appellant. The Corporate Debtor, Trident Ltd., had entered into a contract with the Operational Creditor, with a bank guarantee issued. The Corporate Debtor claimed a deficiency in service by the Operational Creditor and issued a notice under Section 21 of the Arbitration and Conciliation Act, 1996. The Corporate Debtor invoked arbitration clauses and appointed an arbitrator. The Appellant was requested to appoint a second arbitrator. The Appellant then issued a notice under Section 8 of the I&B Code, 2016, and subsequently filed a Section 9 application, which was rejected by the Adjudicating Authority.

## Facts

NTT Data Business Solutions Pvt. Ltd. (Appellant) filed an appeal against an order dismissing their Section 9 application. Trident Ltd. (Corporate Debtor) had a contract with the Operational Creditor, with a bank guarantee. Trident Ltd. claimed deficiency in service by the Operational Creditor and issued a notice under Section 21 of the Arbitration and Conciliation Act, 1996, on June 14, 2021. Trident Ltd. invoked arbitration clauses and appointed Justice R.K. Jain (Retd) as Arbitrator. The Appellant was requested to appoint a second Arbitrator. The Appellant issued a notice under Section 8 of the I&B Code, 2016, on June 21, 2021, and then filed a Section 9 application. The Adjudicating Authority rejected the Section 9 application, finding a pre-existing dispute.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Section 9 application based on the …

**Ratio:** The existence of a pre-existing dispute bars the admission of a Section 9 application

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**Reasoning:** The Adjudicating Authority examined the evidence, including the notice of arbitration

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**Interpretation:** The interpretation of 'pre-existing dispute' is crucial in determining the

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**Application:** In this case, the Corporate Debtor issued a notice of arbitration detailing

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** NTT Data Business…
- **Respondents:** Trident…

## Timeline

- **2021-06-14 — Arbitration…**: Corporate Debtor issued notice under Section 21 of Arbitration and Conciliation Act, 1996…
- **2021-06-18 — Meeting and…**: Meeting and email between…

## 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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