# 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-00400. The appellant, M/s Venus Cotsyn (India) Ltd., filed an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 30 Jul 2019
- **Citation:** TCN-2019-NCLAT-00400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/venus-cotsyn-india-ltd-vs-gl-jain-button-store-pvt-ltd-ca-0d9dad25

## Summary

### Background

The appellant, M/s Venus Cotsyn (India) Ltd., filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s G.L. Jain Button Store Pvt. Ltd., the corporate debtor. The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, rejected the application based on the existence of a pre-existing dispute. The appellant argued that the dispute regarding the quality of goods was resolved amicably and the corporate debtor accepted the debt reflected in the ledger account.

## Facts

M/s Venus Cotsyn (India) Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s G.L. Jain Button Store Pvt. Ltd. The Adjudicating Authority, Chandigarh Bench, rejected the application due to a pre-existing dispute. The appellant claimed the dispute was resolved amicably and the corporate debtor accepted the debt. The respondent referred to WhatsApp communications indicating a dispute over damaged or waste material. The appellate tribunal found a pre-existing dispute regarding invoices in form 5.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application under Section 9 of the …

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting an application

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**Reasoning:** The court found that the WhatsApp communications indicated a dispute over damaged or

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**Interpretation:** Section 9 of the IBC requires that there should be no pre-existing dispute for

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**Application:** The court applied the principle that a pre-existing dispute bars the

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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 application u/s 9 of the Insolvency & Bankruptcy Code, 2016 against…
- **2018-12-21 — Order by Adjudicating…**: The Adjudicating Authority (‘National Company Law Tribunal'), Chandigarh Bench by…

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