# In the matter of NCC Limited CP (IB) no. 278-9-HDB-2019

> NCLT judgment dated 2019-10-18. Citation: TCN-2019-NCLT-00922. The case involves a company petition filed by Expo Gas Containers Ltd (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 18 Oct 2019
- **Citation:** TCN-2019-NCLT-00922
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ncc-limited-cp-ib-no-278-9-hdb-2019-5c6072ad

## Summary

### Background

The case involves a company petition filed by Expo Gas Containers Ltd (Operational Creditor) against NCC Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed default in payment based on an order received from the Government of Maharashtra Directorate of Industries, MSME Facilitation Centre, under MSME Act, 2006. The Corporate Debtor contested the petition, citing the existence of a dispute and non-compliance with the conditions laid down by the MSME Council.

## Facts

Expo Gas Containers Ltd (Operational Creditor) filed a company petition against NCC Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming default in payment. The Operational Creditor had received an order from the Government of Maharashtra Directorate of Industries, MSME Facilitation Centre, under MSME Act, 2006, directing the Corporate Debtor to pay Rs. 32,50,298/- along with interest. The Corporate Debtor contended that there was a pre-existing dispute and that the Operational Creditor had not complied with the conditions laid down by the MSME Council. The Corporate Debtor had issued a letter requesting excise invoices and dispatch documents. The Operational Creditor argued that the Corporate Debtor had pre-closed the

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## Issues and analysis

### Issue 1: Whether the present petition is liable to be dismissed in view of the existence of a dispute …

**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 had not filed an appeal against the MSME

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**Interpretation:** The court interpreted the requirement of a pre-existing dispute narrowly,

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**Application:** The court applied the ratio to the facts by finding that the Corporate Debtor's

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Expo Gas Container…
- **Respondents:** NCC Lim…; NCC…

## Timeline

- **2006-01-01 — MSME Act…**: MSME Act,…
- **2010-10-14 — Order Pla…**: Corporate Debtor placed orders…

## 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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