# In the matter of Infinity Fab Engineering Company Private Limited CP (IB) No. 03-BB-17

> NCLT judgment dated 2017-06-27. Citation: TCN-2017-NCLT-00786. Sunline Suppliers Private Limited, the operational creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 27 Jun 2017
- **Citation:** TCN-2017-NCLT-00786
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/infinity-fab-engineering-company-private-limited-cp-ib-no-03-bb-17-5da7a064

## Summary

### Background

Sunline Suppliers Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Infinity Fab Engineering Company Private Limited, the corporate debtor, alleging default in payment for industrial hardware and tools supplied. The operational creditor claimed that the corporate debtor owed Rs. 11,25,821/-. The corporate debtor contested the application, arguing that there was a pre-existing dispute regarding the quality of goods and non-furnishing of Material Testing Certificates (MTCs), and that the demand notice was invalid. The corporate debtor also claimed that the applicant had suppressed the fact of a pre-existing dispute and a notice to initiate arbitration proceedings.

## Facts

Sunline Suppliers Private Limited (Operational Creditor) supplied industrial hardware and tools to Infinity Fab Engineering Company Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted in payment of Rs. 11,25,821/-. The Operational Creditor served a demand notice on the Corporate Debtor. The Corporate Debtor claimed a pre-existing dispute due to non-furnishing of Material Testing Certificates (MTCs) and raised debit notes. The Corporate Debtor also claimed that the demand notice was invalid and that the Operational Creditor had suppressed the fact of a pre-existing dispute and a notice to initiate arbitration proceedings dated 17.11.2016. The Operational Creditor denied receiving any notice of dispute or reply to the

…

## Issues and analysis

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

**Ratio:** A dispute must exist prior to the issuance of a demand notice to be considered a valid

…

**Reasoning:** The NCLT found that the Corporate Debtor had failed to establish the existence of a

…

**Interpretation:** The interpretation of 'dispute' under Section 5(6) of the I&B Code includes

…

**Application:** In this case, the Corporate Debtor's claim of a pre-existing dispute was based

…

## Parties

- **Judges:** Ratakonda…; Ashok Kumar…
- **Appellants:** Sunline Suppliers…
- **Respondents:** Infinity Fab…

## Timeline

- **2016-11-17 — Corporate Debtor's Notice of Dispute and…**: The Corporate Debtor claimed to have issued a notice of dispute and to initiate…
- **2016-12-21 — Demand Noti…**: The Operational Creditor issued a…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/infinity-fab-engineering-company-private-limited-cp-ib-no-03-bb-17-5da7a064