# In the matter of SPBP Holding Pvt. Ltd. vs. Lomat International NV & Ors.

> NCLAT judgment dated 2023-10-04. Citation: TCN-2023-NCLAT-00147. SPBP Holding Pvt. Ltd., a shareholder of Wearit Global Limited, filed an appeal against the…

- **Court:** NCLAT
- **Order date:** 4 Oct 2023
- **Citation:** TCN-2023-NCLAT-00147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/spbp-holding-pvt-ltd-vs-lomat-international-nv-ors-a37bb3b9

## Summary

### Background

SPBP Holding Pvt. Ltd., a shareholder of Wearit Global Limited, filed an appeal against the order dated 08.04.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) in CP(IB) No.100/KB/2019. The Adjudicating Authority had admitted an application under Section 9 of the IBC filed by Lomat International NV (Respondent No.1) and initiated Corporate Insolvency Resolution Process (CIRP) against Wearit Global Limited. SPBP Holding Pvt. Ltd. filed the appeal, claiming the Adjudicating Authority erroneously disregarded pre-existing disputes raised by the Corporate Debtor in emails dated 15.06.2018 and 30.07.2018, preceding the Section 8 notice of 21.09.2018.

## Facts

Lomat International NV, an operational creditor, supplied raw material to Wearit Global Limited, the corporate debtor, and raised invoices. The operational creditor claimed that payment against four invoices had fallen due, with the fourth invoice dated 02.11.2017 falling due on 01.03.2018. The operational creditor issued a Section 8 demand notice on 21.09.2018, which was replied to by the corporate debtor on 03.10.2018, raising disputes. A civil suit was filed by the corporate debtor on 01.12.2018 before the Calcutta High Court. The operational creditor filed a Section 9 application in January 2019, claiming an operational debt of USD 2,933,869/- and Euro 8423 against four invoices. The corporate debtor contended the existence of a cyclical business arrangement and

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 9 application by disregarding …

**Ratio:** The existence of a genuine pre-existing dispute is a bar to the admission of a Section 9

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**Reasoning:** The NCLAT found that the Adjudicating Authority had carefully considered the submissions

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**Interpretation:** A 'pre-existing dispute' must be a bona fide and substantive dispute, not

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**Application:** The NCLAT applied the principle by examining the communications between the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** SPBP Holding Pvt.…
- **Respondents:** Wearit Global…; Lomat Internationa…

## Timeline

- **2017-11-02 — Last Invoic…**: The last invoice for payment raised by the…
- **2018-03-01 — Due Date of Las…**: The last invoice dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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