# In the matter of Ajenta Chemicals (India) Limited

> NCLT judgment dated 2023-12-08. Citation: TCN-2023-NCLT-00332. The case involves an application filed by M/s Annapurna Polytech Pvt. Ltd. ('Applicant') under…

- **Court:** NCLT
- **Order date:** 8 Dec 2023
- **Citation:** TCN-2023-NCLT-00332
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajenta-chemicals-india-limited-c8ff5167

## Summary

### Background

The case involves an application filed by M/s Annapurna Polytech Pvt. Ltd. ('Applicant') under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC') to initiate Corporate Insolvency Resolution Process ('CIRP') against M/s Ajenta Chemicals (India) Limited ('Corporate Debtor'/'Respondent'). The application is based on an alleged default in repayment of an operational debt amounting to Rs. 39,58,389.52/-. The Corporate Debtor is a public company incorporated on 05.05.1984. The Operational Creditor claims to have supplied custom PET bottles to the Corporate Debtor, who allegedly failed to make payments as per the agreed terms. The Corporate Debtor, however, contends that there was a pre-existing dispute regarding the quality of the supplied bottles and that they

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## Facts

M/s Annapurna Polytech Pvt. Ltd. ('Applicant') filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC') to initiate Corporate Insolvency Resolution Process ('CIRP') against M/s Ajenta Chemicals (India) Limited ('Corporate Debtor'/'Respondent') for an alleged default of Rs. 39,58,389.52/-. The Applicant claimed to have supplied custom PET bottles to the Corporate Debtor, who allegedly failed to make payments. The Corporate Debtor contended that there was a pre-existing dispute regarding the quality of the supplied bottles, stating they were only liable to pay for the bottles filled and used. The Corporate Debtor sent emails to the Applicant regarding the faulty supplies, including issues with wall thickness and pinholes. The Applicant,

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the parties regarding the quality of the supplied …

**Ratio:** The existence of a pre-existing dispute, as defined under the IBC, bars the initiation of

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**Reasoning:** The Adjudicating Authority found that there was evidence of a pre-existing dispute

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**Interpretation:** The term 'dispute' is interpreted broadly to include any disagreement or

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**Application:** In this case, the Corporate Debtor had raised concerns about the quality of the

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## Parties

- **Judges:** P.S.N. P…; RAJEEV ME…
- **Appellants:** M/S ANNAPURNA…
- **Respondents:** M/S AJENTA…

## Timeline

- **1984-05-05 — Incorporation of…**: M/s Ajenta Chemicals…
- **2017-01-01 — Commencement of…**: Corporate Debtor commenced procuring…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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