# In the matter of A&A International Trading Private Limited CP-500 (IB)-CB-2017

> NCLT judgment dated 2017-06-16. Citation: TCN-2017-NCLT-00804. The case involves an application filed by Phoenix Global DMCC (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 16 Jun 2017
- **Citation:** TCN-2017-NCLT-00804
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aa-international-trading-private-limited-cp-500-ib-cb-2017-f5f454e6

## Summary

### Background

The case involves an application filed by Phoenix Global DMCC (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against A&A International Trading Private Limited (Corporate Debtor). The Operational Creditor claimed an outstanding debt of USD 445416, which fell due on 03.02.2016, with the default occurring on 07.07.2015. The Corporate Debtor raised objections regarding the quality of goods, foreign exchange loss, and storage loss, claiming these issues were raised in response to the demand notice. The Operational Creditor argued that these objections were an afterthought and disregarded the terms of the sale and purchase contract.

## Facts

Phoenix Global DMCC (Operational Creditor) filed an application against A&A International Trading Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an outstanding debt of USD 445416. The debt fell due on 03.02.2016, with the default occurring on 07.07.2015. The Operational Creditor sent a demand notice on 05.04.2017, which was acknowledged by the Corporate Debtor. The Corporate Debtor replied on 13.04.2017, raising issues regarding the quality of goods, foreign exchange loss, and storage loss. The Corporate Debtor had accepted the consignment at the port of discharge, certified by an independent agency. The Corporate Debtor claimed the sulphur content was higher than specified in the agreement. The Corporate

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## Issues and analysis

### Issue 1: Whether the objections raised by the Corporate Debtor constitute a genuine dispute under Section 8 …

**Ratio:** The term 'dispute' as mentioned under Section 8 (2) (a) of I&B Code, 2016, which is

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**Reasoning:** The court reasoned that the objections raised by the Corporate Debtor were not genuine,

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**Interpretation:** The interpretation of 'dispute' under the I&B Code requires a genuine

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** M/s. Phoenix…
- **Respondents:** M/S. A & A…

## Timeline

- **2015-03-02 — Sale Purchase…**: Sale Purchase Agreement dated 02.03.2015 entered into between the Operational Creditor…
- **2015-07-07 — Default…**: The date on which the…

## 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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