# In the matter of Decore Exxoils Pvt. Ltd. TP 3 of 2019 C.P. (I.B) No. 202-9-NCLT-AHM-2018

> NCLT judgment dated 2020-03-20. Citation: TCN-2020-NCLT-01437. The case involves an insolvency petition filed by M/s. Oriental Coal Corporation, an…

- **Court:** NCLT
- **Order date:** 20 Mar 2020
- **Citation:** TCN-2020-NCLT-01437
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/decore-exxoils-pvt-ltd-tp-3-of-2019-cp-ib-no-202-9-nclt-ahm-2018-1992c880

## Summary

### Background

The case involves an insolvency petition filed by M/s. Oriental Coal Corporation, an operational creditor, against M/s. Decore Exxoils Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed default in payment for the supply of 'Steam Coal'. The corporate debtor disputed the claim, citing issues with the quality of coal supplied and raising debit notes for the same. The operational creditor issued a demand notice on 13.03.2018, claiming a default of Rs. 19,93,848/- as of 12.03.2018.

## Facts

M/s. Oriental Coal Corporation (Operational Creditor) filed an insolvency petition against M/s. Decore Exxoils Pvt. Ltd. (Corporate Debtor) for non-payment of dues related to the supply of 'Steam Coal'. The Corporate Debtor requested the coal for its Mandideep and Nagpur units, issuing purchase orders in 2013 and 2014. The Operational Creditor claims to have supplied the coal as per the terms and conditions. The Corporate Debtor alleges delays in payments and disputes the quality of the coal, raising debit notes. A demand notice was issued on 13.03.2018, claiming a default of Rs. 19,93,848/- as of 12.03.2018. The Corporate Debtor contends that the petition is time-barred, citing a last payment on 28.05.2014. The Corporate Debtor also claims that the Operational

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## Issues and analysis

### Issue 1: Whether the present I.B. Petition is maintainable under Section 9 of the Insolvency and Bankruptcy …

**Ratio:** The I&B Code is not meant for enforcement of recovery of debts but to bring

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**Reasoning:** The court relied on the Supreme Court's decision in Mobilox Innovations Vs. Kirusha

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**Interpretation:** Section 9 of the IBC requires the absence of a pre-existing dispute for an

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**Application:** The Corporate Debtor presented debit notes and coal analysis reports indicating

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Oriental Coal…
- **Respondents:** Decore Exxoils…

## Timeline

- **1997-11-25 — Incorporation of…**: M/s. Decore Exxoils Pvt.…
- **2013-10-28 — Purchase Order by…**: Corporate Debtor sent a Purchase-Order 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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