# In the matter of Swasti Bhowmick Vs. Rediff.com India Ltd. CA(AT)(Insolvency) No. 462-2019

> NCLAT judgment dated 23 Aug 2019. Citation: TCN-2019-NCLAT-00341. This appeal was filed by Swasti Bhowmick against the rejection of her application under…

- **Court:** NCLAT
- **Order date:** 23 Aug 2019
- **Citation:** TCN-2019-NCLAT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/swasti-bhowmick-vs-rediffcom-india-ltd-ca-6d521222

## Summary

### Background

This appeal was filed by Swasti Bhowmick against the rejection of her application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench. The original application sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Rediff.com India Ltd. The Adjudicating Authority had found that there was an existence of a dispute, which led to the rejection of the Section 9 application. The appellant subsequently brought the matter before the National Company Law Appellate Tribunal (NCLAT) to challenge this decision.

## Facts

The appellant, Swasti Bhowmick, filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench, which had rejected her application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC). The original application sought to initiate corporate insolvency resolution proceedings against Rediff.com India Ltd., the respondent.

The Adjudicating Authority had rejected the Section 9 application after finding that there was an existing dispute between the parties. This finding was crucial as the presence of a pre-existing dispute is a ground for rejecting an application to initiate the Corporate Insolvency Resolution Process (CIRP) by an operational creditor.

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## Issues and analysis

### Issue 1: Whether the appeal against the rejection of a Section 9 application under the IBC should be allowed…

**Ratio:** An appeal against the rejection of a Section 9 application under the IBC can be disposed…

**Reasoning:** The court considered the submissions from both parties. The appellant, through counsel,…

**Interpretation:** The court interpreted the provisions of the IBC and its own powers to…

**Application:** In this case, the NCLAT applied this interpretation by accepting the…

## Parties

- **Judges:** A.I.S. C…; Bansi Lal…; +1 more
- **Advocates:** For the appellant:…; Ashish Muk…; +6 more

## Timeline

- **August 23, 2019 — Order Da…**: The date on which the National Company Law Appellate Tribunal (NCLAT) passed the order in…
- **Section 9 Application…**: The Adjudicating Authority (NCLT Mumbai Bench) rejected the Section 9 application filed…

## 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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