# Jay Ambe Industries vs. MIM Petro World Private Limited

> NCLT judgment dated 2026-08-27. Citation: TCN-2026-NCLT-00900. Jay Ambe Industries (Operational Creditor) filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 27 Aug 2026
- **Citation:** TCN-2026-NCLT-00900
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/jay-ambe-industries-vs-mim-petro-world-private-limited-9tonn

## Summary

### Background

Jay Ambe Industries (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against MIM Petroworld Pvt. Ltd (Corporate Debtor) for an outstanding operational debt of Rs. 1,96,00,535/- (including principal and interest) for goods supplied. The Corporate Debtor contended that the goods supplied were of inferior quality, leading to a pre-existing dispute, business losses, and customer discontinuation. The matter was initially rejected by the NCLT, appealed to the NCLAT, and subsequently remanded back to the NCLT for fresh adjudication after providing an opportunity for both parties to present evidence.

## Facts

Jay Ambe Industries (Operational Creditor) filed a petition under Section 9 of the IBC against MIM Petroworld Pvt. Ltd (Corporate Debtor).

The applicant supplied goods to the respondent and raised invoices from 13.12.2022 to 18.12.2022 for a principal amount of Rs. 1,77,32,898/-.

The total outstanding debt, including interest at 18% till 17.08.2023, amounted to Rs. 1,96,00,535/-.

The date of default for the outstanding bills is stated to be from 12.01.2023 to 17.01.2023.

The applicant issued a demand notice under Section 8 of the Code on 17.08.2023, which was received by the Corporate Debtor on 21.08.2023.

The respondent replied to the demand notice on 29.08.2023, specifically raising a dispute regarding the quality of goods and the applicant's breach of obligations.

…

## Issues and analysis

### Issue 1: Whether the Respondent has established a genuine pre-existing dispute regarding the quality of …

**Ratio:** A pre-existing dispute under Section 9 of the IBC must be genuine, communicated prior to

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**Reasoning:** The NCLT found that the respondent's evidence for a pre-existing dispute was

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**Interpretation:** The term 'dispute' in Section 9 of the IBC requires a bona fide contention that

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**Application:** Given the lack of properly certified electronic evidence, the unverified nature

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Jay Ambe Industrie…; Rajeshkumar…
- **Respondents:** MIM Petroworld…; MIM Petro World…
- **Other parties:** CoC…; Mr Bhavik…
- **Advocates:** Sahil Rao…; Natasha Sha…

## Timeline

- **2022-12-13 — Goods Supplied &…**: Applicant supplied goods to the respondent and raised various invoices starting from this…
- **2022-12-18 — Goods Supplied &…**: Applicant supplied goods to the respondent and raised various invoices up to this date,…

## 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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