# In the matter of Adient India Private Limited CP (IB) No. 1425-MB-IV-2020

> NCLT judgment dated 2023-05-09. Citation: TCN-2023-NCLT-03429. The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adient-india-private-limited-cp-ib-no-1425-mb-iv-2020-8b29c963

## Summary

### Background

The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against the Corporate Debtor, claiming an outstanding debt of Rs. 22,54,15,255/- with interest.

## Facts

Devi Construction Company Private Limited, the Operational Creditor, filed an application under section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Adient India Private Limited, the Corporate Debtor. The Operational Creditor claimed a total amount of Rs. 22,54,15,255/- along with 18% interest per annum from September 1, 2020, stating that this amount was due and in default, with the date of default being June 5, 2019. The Operational Creditor specializes in industrial and commercial construction, while the Corporate Debtor develops seat systems and components for vehicles. The Corporate Debtor and Operational Creditor discussed a turnkey construction project, with the Corporate Debtor issuing a

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## Issues and analysis

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

**Ratio:** An application under Section 9 of the Insolvency and Bankruptcy Code, 2016, must be

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**Reasoning:** The Corporate Debtor had communicated its denial of the entitlement to receive money

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**Interpretation:** The court interpreted 'pre-existing dispute' to include any dispute

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**Application:** Given the Corporate Debtor's email of February 7, 2020, denying payment for

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** DEVI CONSTRUCTION…
- **Respondents:** ADIENT INDIA…
- **Advocates:** Rishabh…; Vasanth Raj…; +3 more

## Timeline

- **August 10, 2017 — Letter of Inte…**: Corporate Debtor issued a Letter of Intent to the Operational Creditor for a turnkey…
- **April 19, 2018 — Meeting for enhanced…**: Meeting held to discuss and accept a cost…

## 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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