# In the matter of Swastik Pipe Ltd. Company Petition No. IB-1018-ND-2019

> NCLT judgment dated 2020-07-27. Citation: TCN-2020-NCLT-00962. M/s. Raaj Unocal Lubricants Ltd. filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 27 Jul 2020
- **Citation:** TCN-2020-NCLT-00962
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swastik-pipe-ltd-company-petition-no-ib-1018-nd-2019-48776efc

## Summary

### Background

M/s. Raaj Unocal Lubricants Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Swastik Pipe Ltd. The applicant, an operational creditor, claimed that the corporate debtor defaulted on payments for the supply of lubricant oils. The application was filed based on invoices issued in May 2017, with an outstanding debt of Rs. 1,72,982/- plus interest. The applicant served a demand notice dated 25.09.2018 under Section 8 of the IBC. The respondent, M/s. Swastik Pipe Ltd., argued that there was a pre-existing dispute regarding the quality of the supplied goods, which was communicated to the applicant via email dated 06.06.2017.

## Facts

M/s. Raaj Unocal Lubricants Ltd. (Applicant/Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Swastik Pipe Ltd. (Respondent/Corporate Debtor). The applicant claimed that the corporate debtor defaulted on payments for the supply of lubricant oils. The applicant is a company incorporated on 26.12.1990. The respondent is a company incorporated on 10.10.1973. The applicant supplied lubricant oils to the respondent based on purchase orders. Invoices were raised, including Invoice No. RULL/17-18/0037 dated 04.05.2017 and Invoice No. RULL/17-18/0051 dated 13.05.2017. The corporate debtor was obligated to pay Rs. 2,22,714/-. The services were completed

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

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

…

**Reasoning:** The court found that the respondent had raised issues with respect to the quality of

…

**Interpretation:** Section 9 of the IBC requires that there should be no pre-existing dispute for

…

**Application:** In this case, the respondent's email dated 06.06.2017, raising concerns about

…

## Parties

- **Judges:** DEEPTI M…; HEMANT KUMAR…
- **Appellants:** M/s. RAAJ UNOCAL…
- **Respondents:** M/s. SWASTIK PIPE…
- **Advocates:** Rajat Agn…; Sanjay…; +1 more

## Timeline

- **1973-10-10 — Incorporation of…**: M/s. Swastik Pipe…
- **1990-12-26 — Incorporation of…**: M/s. Raaj Unocal…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/swastik-pipe-ltd-company-petition-no-ib-1018-nd-2019-48776efc