# In the matter of Vave India Energy Solutions Private Limited vs. Eastman Auto & Power Limited

> NCLAT judgment dated 2026-03-17. Citation: TCN-2026-NCLAT-00066. Vave India Energy Solutions Private Limited (Operational Creditor) filed an appeal against…

- **Court:** NCLAT
- **Order date:** 17 Mar 2026
- **Citation:** TCN-2026-NCLAT-00066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vave-india-energy-solutions-private-limited-vs-eastman-auto-power-limited-eceda249

## Summary

### Background

Vave India Energy Solutions Private Limited (Operational Creditor) filed an appeal against the order passed by the National Company Law Tribunal (NCLT), New Delhi, which rejected its application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) on the ground of a pre-existing dispute.

## Facts

Vave India Energy Solutions Private Limited (Operational Creditor) filed an application under Section 9 of the IBC seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Eastman Auto & Power Limited (Corporate Debtor).

The application was filed for the alleged default in clearing the debt of Rs. 1,02,70,985/- along with interest @ 18% per annum.

The Operational Creditor and the Corporate Debtor had entered into an agreement dated 02.01.2018 for the supply of inverter batteries.

The Operational Creditor started receiving complaints about the power backup of the inverter batteries manufactured and supplied by the Corporate Debtor.

…

## Issues and analysis

### Issue 1: Whether the NCLT was correct in rejecting the application under Section 9 of the IBC on the ground …

**Ratio:** The Adjudicating Authority is not required to go into the merits of the dispute,

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**Reasoning:** The Corporate Debtor had raised the issue of coercion before the demand notice was

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**Interpretation:** The existence of a genuine pre-existing dispute is a valid ground for rejecting

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**Application:** The NCLT was correct in rejecting the application under Section 9 of the IBC as

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## Parties

- **Judges:** Yogesh K…; Ajai Das Me…
- **Appellants:** Vave India Energy…
- **Respondents:** Eastman Auto &…
- **Advocates:** R. Jawaha…; Sayyam Mahe…; +4 more

## Timeline

- **02.01.2018 — Agreement…**: Agreement between Operational Creditor and Corporate Debtor for supply of inverter…
- **12.08.2019 — Credit Note…**: Corporate Debtor offered a credit note promising monthly payments of Rs. 10 lakhs per…

## 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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