# In the matter of Extreme Coatings Pvt. Ltd. CP (IB)-442-(ND)-2018

> NCLT judgment dated 2018-07-18. Citation: TCN-2018-NCLT-01123. Jotun India Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Jul 2018
- **Citation:** TCN-2018-NCLT-01123
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/extreme-coatings-pvt-ltd-cp-ib-442-nd-2018-c76ca0bf

## Summary

### Background

Jotun India Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Extreme Coatings Private Limited, claiming to be the corporate debtor. Jotun India claimed to be an operational creditor, alleging non-payment for paints/coatings supplied to Extreme Coatings based on seventeen invoices. Extreme Coatings raised objections, citing a pre-existing dispute regarding the quality of goods supplied and delays, supported by email correspondence.

## Facts

Jotun India Private Limited (the applicant) claimed to be an operational creditor of Extreme Coatings Private Limited (the respondent). Between 2015 and 2016, Jotun India supplied paints/coatings to Extreme Coatings based on purchase orders. Jotun India raised seventeen invoices totaling Rs. 72,28,213/-. Extreme Coatings allegedly failed to make the payment. Jotun India issued a notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, on 27 December 2017, which was delivered to Extreme Coatings on 02 January 2018. Extreme Coatings filed a reply on 25 May 2018, raising objections and claiming a pre-existing dispute regarding the quality of goods supplied. Extreme Coatings presented email correspondence showing complaints from its clients regarding the quality

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## Issues and analysis

### Issue 1: Whether a pre-existing 'dispute' existed between Jotun India Private Limited and Extreme Coatings …

**Ratio:** The definition of 'dispute' under Section 5(6) of the Insolvency and Bankruptcy Code,

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**Reasoning:** The NCLT examined the email correspondence presented by Extreme Coatings, which indicated

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**Interpretation:** The term 'dispute' under Section 5(6) is interpreted broadly to include any

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**Application:** In this case, the NCLT applied the ratio by examining the evidence presented by

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Jotun India…
- **Respondents:** Extreme Coatings…

## Timeline

- **2015-10-01 — Dispute A…**: Dispute arises between Jotun India and Extreme Coatings regarding the quality of goods…
- **2017-12-27 — Section 8 Noti…**: Jotun India issues a notice to Extreme Coatings under Section 8 of the Insolvency and…

## 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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