# In the matter of Venus Cotsyn (India) Ltd. Vs. G.L Jain Button Store Pvt. Ltd. CA(AT)(Insolvency) No. 112-2019

> NCLAT judgment dated 2019-07-30. Citation: TCN-2019-NCLAT-00399. The case involves an appeal against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 30 Jul 2019
- **Citation:** TCN-2019-NCLAT-00399
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/venus-cotsyn-india-ltd-vs-gl-jain-button-store-pvt-ltd-ca-0c9a889a

## Summary

### Background

The case involves an appeal against an order by the Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, which rejected an application filed by the appellant under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to a pre-existing dispute. The appellant claimed that the dispute regarding the quality of goods was resolved amicably and that the corporate debtor subsequently accepted the debt reflected in the ledger account. The respondent referred to WhatsApp communications suggesting a dispute over damaged or waste material. The Appellate Tribunal found a pre-existing dispute regarding invoices.

## Facts

M/s Venus Cotsyn (India) Ltd. (Appellant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s G.L. Jain Button Store Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, rejected the application due to a pre-existing dispute. The Appellant claimed the dispute regarding the quality of goods was resolved amicably and the Corporate Debtor accepted the debt. The Respondent (Corporate Debtor) presented WhatsApp communications indicating a dispute over damaged or waste material. The Appellate Tribunal found a pre-existing dispute regarding invoices shown in form 5.

## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Appellant and the Corporate Debtor, precluding …

**Ratio:** The existence of a pre-existing dispute, as defined under the Insolvency and Bankruptcy

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**Reasoning:** The court reasoned that the WhatsApp communications presented by the Respondent indicated

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**Interpretation:** The interpretation of 'pre-existing dispute' under the IBC is crucial. It

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**Application:** In this case, the court applied the ratio by examining the evidence presented

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** M/s Venus Cotsyn…
- **Respondents:** M/s G.L. Jain…

## Timeline

- **2019-07-30 — Application…**: The Appellant filed an application under Section 9 of the Insolvency & Bankruptcy Code,…
- **2018-12-21 — Application R…**: The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, rejected…

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