# In the matter of Ajenta Chemicals (India) Limited

> NCLT judgment dated 2023-12-08. Citation: TCN-2023-NCLT-00341. M/s Annapurna Polytech Pvt. Ltd. ('Applicant') filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 8 Dec 2023
- **Citation:** TCN-2023-NCLT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajenta-chemicals-india-limited-e152855c

## Summary

### Background

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 alleged default on repayment of operational debt amounting to Rs. 39,58,389.52/-. The Operational Creditor delivered goods as per verbal communication by the authorized representative of the Corporate Debtor. The Operational Creditor intended to execute a contract/agreement to avoid future inconvenience, but the Corporate Debtor assured that a binding agreement would be executed. The Corporate Debtor is a public company incorporated on 05.05.1984. The applicant averred that in

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## Facts

M/s Annapurna Polytech Pvt. Ltd. (Operational Creditor) filed an application to initiate CIRP against M/s Ajenta Chemicals (India) Limited (Corporate Debtor) for non-payment of Rs. 39,58,389.52/-. The Operational Creditor supplied custom pet bottles to the Corporate Debtor. The Corporate Debtor claimed that the supplied bottles were of substandard quality and issued debit notes. The Corporate Debtor also stated that they were only liable to pay for the bottles filled and used by them. The Operational Creditor claimed that there was no quality dispute and that the Corporate Debtor did not make payments on time. Both parties exchanged email communications regarding the quality of the bottles. The Operational Creditor lodged a police complaint against the directors and

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## Issues and analysis

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

**Ratio:** The IBC is not intended to be a substitute for a recovery forum, and disputes regarding

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**Reasoning:** The Adjudicating Authority found that there was a pre-existing dispute between the

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**Interpretation:** The existence of a 'dispute' as defined under the IBC, particularly when it

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**Application:** In this case, the Corporate Debtor 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…
- **Advocates:** Hari…; Mohit Si…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and Bankruptcy…
- **2018-08-01 — Corporate Debtor Seized…**: The Corporate Debtor seized the supplies from the Applicant in August 2018 due to the…

## 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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