# In the matter of Vimal Organics L. Vs Anya Polytech & Fertilizers P.L. CA (AT) No.269-2017

> NCLAT judgment dated 2017-12-22. Citation: TCN-2017-NCLAT-00002. Vimal Organics Limited (Operational Creditor/Appellant) appealed against the order dated 10th…

- **Court:** NCLAT
- **Order date:** 22 Dec 2017
- **Citation:** TCN-2017-NCLAT-00002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vimal-organics-l-vs-anya-polytech-fertilizers-pl-ca-971cd6db

## Summary

### Background

Vimal Organics Limited (Operational Creditor/Appellant) appealed against the order dated 10th October, 2017, by NCLT, New Delhi Bench, which rejected their application under Section 9 of the Insolvency and Bankruptcy Code (IBC). The application was filed against Anya Polytech & Fertilizers Pvt. Ltd. (Corporate Debtor/Respondent) for non-payment of invoices related to the supply of a Buyer Zinc Sulphate Manufacturing Plant. The NCLT rejected the application based on the existence of a dispute between the parties.

## Facts

Vimal Organics Limited (Operational Creditor) and Anya Polytech & Fertilizers Pvt. Ltd. (Corporate Debtor) entered into an agreement on May 3, 2014, for the supply of a Buyer Zinc Sulphate Manufacturing Plant (50MTPD) by the Operational Creditor to the Corporate Debtor. The Operational Creditor supplied the plant, but commissioning was not properly done, which was detected during the trial run. The Corporate Debtor informed the Operational Creditor via email on February 25, 2016, that they needed support and cooperation to start the trial run. The Corporate Debtor also communicated that the Managing Director was anxious due to the delayed trial run. A subsequent letter dated May 31, 2016, indicated that the Corporate Debtor's team could not achieve the desired

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## Issues and analysis

### Issue 1: Whether there was an 'existence of dispute' between the Operational Creditor and the Corporate …

**Ratio:** The existence of a genuine dispute between the parties precludes the initiation of the

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**Reasoning:** The court reasoned that the correspondence between the parties, including emails and

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**Interpretation:** The term 'existence of dispute' under Section 5(6) read with Section 9 of the

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**Application:** In this case, the court applied the ratio to the facts by finding that the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Vimal Organics…
- **Respondents:** Anya Polytech &…
- **Advocates:** Nesar A…; Ahsan A…; +4 more

## Timeline

- **2014-05-03 — Agreement…**: Agreement reached between Vimal Organics Limited and Anya Polytech & Fertilizers Pvt.…
- **2016-02-25 — Email Commun…**: Corporate Debtor informed Operational Creditor about the need for support and cooperation…

## 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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