# In the matter of Dymos Lear Automotive India Pvt. Ltd. CP-723-IB-2017

> NCLT judgment dated 2018-03-26. Citation: TCN-2018-NCLT-01641. The case involves an application filed by Vanjax Sales Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 26 Mar 2018
- **Citation:** TCN-2018-NCLT-01641
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dymos-lear-automotive-india-pvt-ltd-cp-723-ib-2017-6e3c51b4

## Summary

### Background

The case involves an application filed by Vanjax Sales Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Dymos Lear Automotive India Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for a One Ton double Column Goods Lift supplied by them. The Corporate Debtor disputed the claim, citing issues with the safety standards and technical specifications of the supplied materials, as well as a fatal accident that occurred during installation.

## Facts

Vanjax Sales Private Limited (Operational Creditor) filed an application against Dymos Lear Automotive India Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default in payment for a One Ton double Column Goods Lift. The Operational Creditor raised an invoice dated 23.02.2015 for Rs. 10,38,206/-. The Corporate Debtor made a payment of Rs.4,40,000/-, leaving a balance of Rs.5,98,206/- due as of 23.02.2015. The Operational Creditor sent a legal notice dated 14.09.2016 claiming the balance amount with 18% interest. The Corporate Debtor replied on 04.10.2016, raising a dispute that the materials supplied did not meet safety standards and technical specifications, and that the Operational Creditor did not carry out

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5)(ii)(d) of the I&B Code states that the Adjudicating Authority shall

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**Reasoning:** The court reasoned that there was a pre-existing dispute between the Operational Creditor

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational

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**Application:** In this case, the Corporate Debtor had raised a dispute regarding the quality

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Vanjax Sales Pvt…
- **Respondents:** Dymos Lear…

## Timeline

- **2014-11-17 — Asset Purchas…**: Asset Purchase Order dated 17.11.2014, stating the Corporate Debtor is not responsible…
- **2015-02-23 — Invoice R…**: Operational Creditor raised Invoice…

## 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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