# In the matter of RB Assets & Developers Pvt. Ltd. vs.  B.P. Food Products Pvt. Ltd.

> NCLAT judgment dated 2024-07-26. Citation: TCN-2024-NCLAT-00289. This is a Company Appeal (AT) (Insolvency) No. 1282 of 2024 filed against an order dated…

- **Court:** NCLAT
- **Order date:** 26 Jul 2024
- **Citation:** TCN-2024-NCLAT-00289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rb-assets-developers-pvt-ltd-vs-bp-food-products-pvt-ltd-08b391ee

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 1282 of 2024 filed against an order dated 04.04.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Indore Bench) which rejected the Section 9 Application filed by the Appellant. The Appellant, claiming to be the Operational Creditor, filed a Section 9 Application against the Corporate Debtor for an amount of Rs. 2,45,57,000/- including interest. The Adjudicating Authority issued a notice, and the Corporate Debtor filed a reply, bringing a Settlement Agreement dated 14.09.2022 on record, agreeing to a payment of Rs. 51,88,086/- after reconciliation. The Adjudicating Authority took the view that the amount due was less than Rs. 1,00,00,000/- and dismissed the application.

## Facts

RB Assets & Developers Pvt. Ltd. (Appellant) filed a Section 9 application against B.P. Food Products Pvt. Ltd. (Corporate Debtor) claiming Rs. 2,45,57,000/-. The Adjudicating Authority rejected the application because the amount due was less than Rs. 1,00,00,000/-, based on a Settlement Agreement. The Settlement Agreement, dated 14.09.2022, stated that the Corporate Debtor would pay Rs. 51,88,086/- after reconciliation. The Appellant claimed the Settlement Agreement was breached due to non-payment, and the actual amount due was Rs. 1,87,59,203/-. The Corporate Debtor issued a Notice of Dispute on 08.05.2023, claiming reconciliation issues and inferior quality of supplies. The Notice of Dispute also mentioned a payment of Rs. 2,00,000/- made on 19th April 2023,

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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 Adjudicating Authority can reject a Section 9 application if the debt is disputed or

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**Reasoning:** The Adjudicating Authority relied on the Settlement Agreement and the Corporate Debtor's

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**Interpretation:** The court interpreted the IBC provisions to allow rejection of applications

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**Application:** The court applied this principle to the facts, finding that the Settlement

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** RB Assets &…
- **Respondents:** B P Food Products…
- **Advocates:** Palash S. S…; Harshal S…; +2 more

## Timeline

- **2022-09-14 — Settlement Ag…**: Settlement Agreement between the parties was brought on record, agreeing to a payment of…
- **2023-04-19 — Payment after…**: B.P. Food Products Pvt. Ltd. paid Rs.…

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