# In the matter of Flucksur India Pvt. Ltd. IB-3060-(ND)-2019

> NCLT judgment dated 2021-04-01. Citation: TCN-2021-NCLT-02498. The case involves an application filed by M/s Soham Polymers Private Limited, the operational…

- **Court:** NCLT
- **Order date:** 1 Apr 2021
- **Citation:** TCN-2021-NCLT-02498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/flucksur-india-pvt-ltd-ib-3060-nd-2019-5afa8d4c

## Summary

### Background

The case involves an application filed by M/s Soham Polymers Private Limited, the operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s Flocksur India Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor failed to pay an outstanding amount of Rs. 39,45,231/- for goods and materials supplied, along with interest of Rs. 7,08,630/-, totaling Rs. 46,53,861/-. The corporate debtor, however, contended that there was a pre-existing dispute regarding the quality of the goods supplied, which was communicated to the operational creditor via email on 20.05.2019, prior to the issuance of the demand notice.

## Facts

M/s Soham Polymers Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Flocksur India Pvt. Ltd. (Corporate Debtor) for an outstanding payment of Rs. 39,45,231/- plus interest of Rs. 7,08,630/-, totaling Rs. 46,53,861/- for goods/materials supplied. The Operational Creditor claimed to have repeatedly demanded the payment since August 2018, and issued a demand notice dated 05.08.2019. The Corporate Debtor, however, contended that a pre-existing dispute existed, as they had informed the Operational Creditor via email on 20.05.2019 about the substandard quality of the supplied goods and the losses incurred due to their use. The Corporate Debtor also stated that they had issued a demand notice

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## Issues and analysis

### Issue 1: Whether there exists a pre-existing dispute between the operational creditor and the corporate …

**Ratio:** The ratio is based on the interpretation of 'dispute' as defined and elucidated by the

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**Reasoning:** The court reasoned that the corporate debtor had already intimated the operational

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**Interpretation:** The interpretation hinges on the definition of 'dispute' under the Insolvency

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**Application:** In this case, the corporate debtor's communication regarding the substandard

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** M/s Soham…
- **Respondents:** M/s Flocksur…

## Timeline

- **2018-08-01 — Operational Creditor…**: The operational creditor repeatedly demanded outstanding payment through WhatsApp and…
- **2019-05-20 — Corporate Debtor…**: The corporate debtor, for the first time, disputed its liability to pay the debt via…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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