# In the matter of India Power Corporation (Bodhgaya) Limited CP(IB) No. 30-KB-2019

> NCLT judgment dated 2019-11-08. Citation: TCN-2019-NCLT-00662. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by…

- **Court:** NCLT
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-NCLT-00662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/india-power-corporation-bodhgaya-limited-cpib-no-30-kb-2019-944d0ac5

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Dynamic Cables Limited (Operational Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against India Power Corporation (Bodhgaya) Limited (Corporate Debtor). The Operational Creditor claimed a default amount of Rs. 2,32,46,235/-, including interest. The Corporate Debtor contested the application, claiming pre-existing disputes and asserting that goods had been taken back, negating the debt.

## Facts

Dynamic Cables Limited (Operational Creditor) supplied cables to India Power Corporation (Bodhgaya) Limited (Corporate Debtor) against purchase orders. The first purchase order was issued on 05.12.2017, valued at Rs. 2,66,97,824.50/-. Goods worth Rs. 96,62,690/- were supplied in December 2017, and goods worth Rs. 1,69,25,218/- were supplied in January 2018. A principal sum of Rs. 95,69,241/- remained outstanding. Another purchase order/LOA was issued on 09.04.2018, valued at Rs. 3,66,77,518/-. Goods worth Rs. 1,54,95,036/- were supplied in May 2018, and goods worth Rs. 97,01,684/- were supplied in the second half of May 2018. The balance goods were not supplied due to non-receipt of payment. The total value of supplies against the letter of award was stated as Rs.

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## Issues and analysis

### Issue 1: Whether there existed a pre-existing dispute between the Operational Creditor and the Corporate …

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

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**Reasoning:** The court found that the Corporate Debtor's claim of a pre-existing dispute was not

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**Interpretation:** A pre-existing dispute must be a genuine dispute raised before the issuance of

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**Application:** In this case, the court found that the Corporate Debtor failed to provide

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Dynamic Cables…
- **Respondents:** India Power…

## Timeline

- **2017-12-05 — First Purchas…**: First purchase order bearing…
- **2017-12-01 — First Lot of Goods…**: The first lot of goods worth…

## 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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