# In the matter of Refex Energy Ltd. CP-416-IB-2018

> NCLT judgment dated 2018-10-31. Citation: TCN-2018-NCLT-00416. The Operational Creditor, M/s. Jackson Engineering Private Limited, filed a Company Petition…

- **Court:** NCLT
- **Order date:** 31 Oct 2018
- **Citation:** TCN-2018-NCLT-00416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/refex-energy-ltd-cp-416-ib-2018-12c7385b

## Summary

### Background

The Operational Creditor, M/s. Jackson Engineering Private Limited, filed a Company Petition against the Corporate Debtor, M/s. Refex Energy Limited, under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of ₹1,77,52,691. The Corporate Debtor had placed a Purchase Order on 16.08.2013 for the supply of five PV Boxes. The Creditor delivered, installed, and commissioned the PV Boxes. The Debtor made part payments, but a balance remained due. The Debtor issued cheques which were later dishonored. The Creditor initiated criminal proceedings for dishonor of cheque. The Creditor issued a Section-8 Notice on 29.11.2017 demanding payment.

## Facts

M/s. Jackson Engineering Private Limited (Operational Creditor) filed a petition against M/s. Refex Energy Limited (Corporate Debtor) under Section 9 of the IBC, 2016, for a default of ₹1,77,52,691. The Corporate Debtor placed a Purchase Order on 16.08.2013 for five PV Boxes costing ₹5,30,40,000. The Creditor delivered, installed, and commissioned the PV Boxes. The Debtor made part payments, leaving a balance of ₹1,77,52,691. The Debtor issued a cheque bearing number 604147 dated 02.04.2014 and another cheque bearing number 613008 dated 28.08.2014, and another cheque dated 08.12.2014 bearing number 619708 for a sum of ₹1,73,61,691. The cheques were dishonored. The Creditor initiated criminal proceedings. The Creditor issued a Section-8 Notice on 29.11.2017. The Debtor

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## Issues and analysis

### Issue 1: Whether a dispute is in existence between the parties before receipt of Section 8 notice by the …

**Ratio:** The existence of a pre-existing dispute, as defined under Section 5(6) of the IBC, bars

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**Reasoning:** The court reasoned that the Debtor had raised concerns about defects and warranties in

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**Interpretation:** Section 5(6) defines 'dispute' to include a suit or arbitration proceedings

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**Application:** The court applied the ratio to the facts by noting that the Debtor's complaints

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s. Jackson…
- **Respondents:** M/s. Refex Energy…

## Timeline

- **2013-08-16 — Purchase…**: Corporate Debtor placed a Purchase Order on…
- **2014-04-02 — Cheque I…**: Debtor issued cheque…

## 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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