# In the matter of ALFA Batteries Pvt. Ltd. TCP 766-I&BP-NCLT-MAH-2017

> NCLT judgment dated 2017-09-26. Citation: TCN-2017-NCLT-00358. The case involves a Company Petition filed under Sections 433 and 434 of the Companies Act,…

- **Court:** NCLT
- **Order date:** 26 Sept 2017
- **Citation:** TCN-2017-NCLT-00358
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alfa-batteries-pvt-ltd-tcp-766-ibp-nclt-mah-2017-1998ad08

## Summary

### Background

The case involves a Company Petition filed under Sections 433 and 434 of the Companies Act, 1956, by an Operational Creditor (Manika Moulds Pvt. Ltd.) against a Corporate Debtor (Alfa Batteries Pvt. Ltd.) for failing to make repayment for goods received, amounting to ₹15,84,873. The Corporate Debtor disputed the claim, alleging the goods supplied were faulty. The Petitioner initially filed a winding-up petition in the High Court of Bombay, which was later transferred to the NCLT due to jurisdictional changes. The NCLT is now considering the case under Section 9 of the Insolvency & Bankruptcy Code, 2016.

## Facts

Manika Moulds Pvt. Ltd. (Operational Creditor) filed a Company Petition against Alfa Batteries Pvt. Ltd. (Corporate Debtor) under Sections 433 and 434 of the Companies Act, 1956, seeking repayment of ₹15,84,873 for goods supplied. The invoices were raised between 2013-10-23 and 2014-02-14 for PP Battery Containers, PP Battery Lids, PP Handles/Rope Handles, and PP Battery Vent plugs. Alfa Batteries disputed the claim, alleging the goods were faulty and provided emails dated 2013-10-09, 2013-10-29, and 2014-01-14, and a reply to the statutory notice dated 2015-07-02 as evidence. The Petitioner initially filed a winding-up petition in the High Court of Bombay, which was later transferred to the NCLT. The NCLT considered whether a pre-existing dispute existed before the

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** A petition under Section 9 of the Insolvency & Bankruptcy Code cannot be admitted if

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**Reasoning:** The court reasoned that the Corporate Debtor had already disputed the quality of goods in

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**Interpretation:** The interpretation focuses on whether the communication from the Corporate

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**Application:** The court applied the ratio to the facts by examining the emails and reply to

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** MANIKA MOULDS…
- **Respondents:** ALFA BATTERIES…

## Timeline

- **1956-01-01 — Companies Ac…**: Company Petition filed under Sections…
- **2013-10-09 — Email from Corporate…**: Corporate Debtor sent an email…

## 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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