# In the matter of Rappid Valves (India) Private Limited C.P. No. 536-I&BP-2019

> NCLT judgment dated 2019-07-22. Citation: TCN-2019-NCLT-02387. AMI Alloys filed a Company Petition against Rappid Valves (India) Private Limited, alleging…

- **Court:** NCLT
- **Order date:** 22 Jul 2019
- **Citation:** TCN-2019-NCLT-02387
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rappid-valves-india-private-limited-cp-no-536-ibp-2019-445a1dd1

## Summary

### Background

AMI Alloys filed a Company Petition against Rappid Valves (India) Private Limited, alleging default in payment of Rs. 12,47,250/- inclusive of interest. AMI Alloys claimed to have sold cast articles of alloys steel and copper alloys to Rappid Valves, who failed to repay the dues. A demand notice was issued on 2018-06-26, but Rappid Valves neither replied nor repaid the dues.

## Facts

AMI Alloys (the Petitioner) filed a company petition against Rappid Valves (India) Private Limited (the Corporate Debtor) claiming a default of Rs. 12,47,250/- inclusive of interest. The claim arose from the sale of cast articles of alloys steel and copper alloys by AMI Alloys to Rappid Valves. AMI Alloys issued a demand notice on 2018-06-26 for Rs. 11,85,141/-, but Rappid Valves did not respond or repay the dues. Rappid Valves contested the petition, arguing that the goods were of inferior quality based on complaints from their client MSA in Prague. MSA raised quality issues via email between 2017-03-22 and 2017-04-11. Rappid Valves also presented an email from MSA demanding USD 8900 for repairs. AMI Alloys countered that Rappid Valves admitted the debt on 2019-03-25

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute regarding the quality of goods supplied by the Petitioner …

**Ratio:** Section 5(6)(b) of the IBC defines 'dispute' to include a suit or arbitration proceedings

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**Reasoning:** The court reasoned that email communications between the Corporate Debtor and its client

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**Interpretation:** The interpretation of Section 5(6)(b) and the Mobilox Innovations judgment

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

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Ami Al…
- **Respondents:** Rappid Valves…
- **Advocates:** Dhiren R…; Prachi Wa…

## Timeline

- **2017-01-23 — Sample Ap…**: One sample was checked and…
- **2017-03-09 — Goods Exp…**: Corporate Debtor exported goods to MSA on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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