# In the matter of 3 Aces Wood Private Limited IB-1071-(ND)-2020

> NCLT judgment dated 2023-03-16. Citation: TCN-2023-NCLT-04227. M/s. Mother Lam Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 16 Mar 2023
- **Citation:** TCN-2023-NCLT-04227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/3-aces-wood-private-limited-ib-1071-nd-2020-b89b46fa

## Summary

### Background

M/s. Mother Lam Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. 3 Aces Wood Private Limited, alleging a default of Rs. 4,63,90,800/-. The Operational Creditor claimed to be a manufacturer and supplier of wood products to the Corporate Debtor. The Corporate Debtor contested the application, asserting that there was no debt owed and that pre-existing disputes existed regarding the quality of goods supplied.

## Facts

M/s. Mother Lam Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. 3 Aces Wood Private Limited (Corporate Debtor) for an alleged default of Rs. 4,63,90,800/-. The Operational Creditor claimed to have supplied Paper Based Decorative High Pressure Laminate to the Corporate Debtor. The Corporate Debtor failed to make payments of Rs. 3,71,13,467/- along with interest of Rs. 92,77,333/-. A demand notice dated 15.02.2020 was issued. The Corporate Debtor contended that there was no debt owed and that pre-existing disputes existed regarding the quality of goods supplied, leading to customer complaints and payment cessation. The Corporate Debtor also claimed to have provided raw

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the Operational Creditor and the Corporate Debtor …

**Ratio:** The Supreme Court in 'Mobilox Innovations Pvt. Ltd. Vs. Kirusa Software (P) Limited' held

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**Reasoning:** The NCLT examined the email communications between the parties, particularly those from

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**Interpretation:** The interpretation of 'dispute' under Section 8 of the IBC requires a genuine

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**Application:** In this case, the email communications from May 2019, which predate the demand

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** M/S. MOTHER LAM…
- **Respondents:** M/S. 3 ACES WOOD…

## Timeline

- **2018-06-01 — Dispute A…**: Dispute between the…
- **2018-07-22 — Invoice Du…**: Invoice due date from…

## 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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