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

> NCLT judgment dated 2019-10-18. Citation: TCN-2019-NCLT-00925. 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-00925
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ncc-limited-cp-ib-no-278-9-hdb-2019-737f48e5

## 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 the 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 the MSME Act, 2006, directing the Corporate Debtor to pay Rs. 32,50,298/- along with interest. The Corporate Debtor contested the petition, stating that a dispute existed between the parties. The Corporate Debtor claimed that the Operational Creditor had not supplied the material ordered or furnished invoices with the details of excise duty and other taxes. The Corporate Debtor also argued that the Operational Creditor had not

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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:** A pre-existing dispute must be a genuine dispute and not a mere pretext to avoid payment.

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**Reasoning:** The court found that the Corporate Debtor had not raised any dispute regarding the MSME

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**Interpretation:** The existence of a dispute is a bar to the admission of an application under

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**Application:** In this case, the court found that there was no pre-existing dispute as the

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## Parties

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

## Timeline

- **2010-10-14 — Order Pla…**: Corporate Debtor placed orders to the Operational Creditor for designing, manufacturing,…
- **2011-07-08 — Order Pla…**: Corporate Debtor placed orders to the Operational Creditor for designing, manufacturing,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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