# In the matter of Ginni Filaments Ltd. Company Petition (IB) No.325-ALD-2018

> NCLT judgment dated 2018-12-03. Citation: TCN-2018-NCLT-00223. M/s Winsome Yarns Limited filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Dec 2018
- **Citation:** TCN-2018-NCLT-00223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ginni-filaments-ltd-company-petition-ib-no325-ald-2018-fa3b5451

## Summary

### Background

M/s Winsome Yarns Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Ginni Filaments Ltd for initiation of Corporate Insolvency Resolution Process (CIRP). Winsome Yarns claimed that Ginni Filaments owed them Rs. 80,23,368/- for goods supplied between April 2015 and May 2015. Ginni Filaments objected, stating that there was a pre-existing dispute regarding the quality and delivery of goods, and that the claim was barred by limitation.

## Facts

M/s Winsome Yarns Limited (Operational Creditor) filed a petition against M/s Ginni Filaments Ltd (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an outstanding debt of Rs. 80,23,368/-. The debt arose from the supply of Melange yarn between April 2015 and May 2015. Ginni Filaments argued that there was a pre-existing dispute regarding the quality and delivery of the goods, and that the claim was time-barred. Winsome Yarns issued a demand notice on 17.04.2018, to which Ginni Filaments replied on 27.04.2018. Ginni Filaments claimed losses of Rs. 1,17,80,951/- due to non-delivery of goods. The last transaction between the parties occurred on 04.05.2015. The petition was filed on 20.08.2018.

## Issues and analysis

### Issue 1: Whether there was pre-existing dispute between …

**Ratio:** The existence of a genuine dispute prior to the issuance of a demand notice is a valid

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**Reasoning:** The court found that Ginni Filaments had raised concerns about the delivery schedule and

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**Interpretation:** The interpretation of 'dispute' under the IBC requires a genuine disagreement

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**Application:** In this case, the court applied the ratio by examining the communications

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## Parties

- **Judges:** SH. BIKKI…; Ms Saroj R…
- **Appellants:** M/s Winsome Yarns…
- **Respondents:** M/s Ginni…

## Timeline

- **1990-07-19 — Incorporation of…**: M/s Winsome Yarns Limited…
- **1982-07-28 — Incorporation of…**: M/s Ginni Filaments Ltd…

## 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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