# In the matter of Amerex Private Limited Company Petition No. IB-339-ND-2020

> NCLT judgment dated 2022-03-10. Citation: TCN-2022-NCLT-03813. The case involves a Company Petition (IB-339/ND/2020) filed under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 10 Mar 2022
- **Citation:** TCN-2022-NCLT-03813
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amerex-private-limited-company-petition-no-ib-339-nd-2020-0b151ae7

## Summary

### Background

The case involves a Company Petition (IB-339/ND/2020) filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Kunal Singh, an operational creditor, against M/s Amerex Private Limited, the corporate debtor. The operational creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to an alleged default of Rs. 68,33,055/- for supplying dry and steam irons. The corporate debtor raised objections, claiming a pre-existing dispute regarding the quality of goods supplied and non-compliance with the Legal Metrology Act, 2009.

## Facts

Kunal Singh, an operational creditor and proprietor of M/s Kunal Enterprises, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s Amerex Private Limited, the corporate debtor. The claim was based on an alleged default of Rs. 68,33,055/- for supplying dry and steam irons. The operational creditor claimed to have sent a demand notice under Section 8 of the IBC. The corporate debtor contested the petition, asserting a pre-existing dispute concerning the quality of the goods, their non-compliance with the Legal Metrology Act, 2009, and the return of defective goods. The corporate debtor also raised a debit note for Rs. 11,29,968/-. The operational creditor had previously filed a case under Section 138 of the Negotiable

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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:** A pre-existing dispute, if proven, can be a valid ground for rejecting an application

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**Reasoning:** The court found that the corporate debtor had raised concerns about the quality of goods

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**Interpretation:** The interpretation of 'pre-existing dispute' involves assessing whether a

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**Application:** In this case, the court applied the ratio by considering the evidence presented

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## Parties

- **Judges:** SHRI. DHARMINDER…; SUMITAPURKA…
- **Appellants:** Kunal S…
- **Respondents:** M/s Amerex…

## Timeline

- **2018-09-08 — Invoice Perio…**: Start date of the period during which invoices were issued by the operational creditor to…
- **2019-11-05 — Invoice Per…**: End date of the period during which invoices were issued by the operational creditor to…

## 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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