# In the matter of Star Trace Private Limited IBA-304-2020

> NCLT judgment dated 2021-08-09. Citation: TCN-2021-NCLT-01408. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Aug 2021
- **Citation:** TCN-2021-NCLT-01408
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/star-trace-private-limited-iba-304-2020-6ca706f6

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. Umiya Development Centre India Private Limited (Operational Creditor) against M/s. Star Trace Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The Operational Creditor claimed a sum of Rs.7,74,25,437/- as of 20.02.2019, which was due and payable by the Corporate Debtor with a commercial rate of interest at 18% per annum. The Operational Creditor supplied MS Plates to the Corporate Debtor between August 2017 and February 2018, raising invoices for Rs.18,13,70,322.66/-, of which the Corporate Debtor paid Rs.10,37,46,928/-. The Corporate Debtor disputed the claim, citing discrepancies

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## Facts

M/s. Umiya Development Centre India Private Limited (Operational Creditor) filed an application against M/s. Star Trace Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The Operational Creditor claimed that the Corporate Debtor owed Rs.7,74,25,437/- as of 20.02.2019, with an 18% interest rate. The debt arose from the supply of MS Plates by the Operational Creditor to the Corporate Debtor between August 2017 and February 2018, for which invoices totaling Rs.18,13,70,322.66/- were raised. The Corporate Debtor paid Rs.10,37,46,928/-, leaving a balance unpaid. The Operational Creditor issued a demand notice on 27.12.2019, which the Corporate Debtor received on 28.12.2019. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether there exists any dispute between the …

**Ratio:** A genuine pre-existing dispute would preclude the admission of an application under

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**Reasoning:** The Tribunal observed that the Corporate Debtor's defenses were raised only after the

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**Interpretation:** The existence of a genuine dispute prior to the issuance of a demand notice is

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**Application:** In this case, the Corporate Debtor's failure to provide documentary evidence of

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Harsan…
- **Respondents:** M/s. Star Trace…

## Timeline

- **2017-08-01 — Supply of MS…**: Operational Creditor supplied MS Plates to Corporate Debtor between August 2017 and…
- **2018-02-01 — End of Supply…**: Supply of MS Plates by Operational…

## 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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