# In the matter of Amrit Polychem Private Limited

> NCLT judgment dated 2023-08-02. Citation: TCN-2023-NCLT-02200. Korea Trade Insurance Corporation filed a Company Petition under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 2 Aug 2023
- **Citation:** TCN-2023-NCLT-02200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amrit-polychem-private-limited-689332c9

## Summary

### Background

Korea Trade Insurance Corporation filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Amrit Polychem Private Limited, the Corporate Debtor, for a default amount of Rs. 1,92,46,284/-. The default date was specified as 29.07.2017, based on Proforma Invoice No. JT-17-04-21-AMRIT dated 21.04.2017 and Commercial Invoices No. JT-17-04-21 AMRIT dated 29.04.2017, requiring payment within 90 days of the Bill of Lading issuance dated 29.04.2017. The Corporate Debtor argued the existence of a pre-existing dispute, suppression of material facts, and limitation, while the Operational Creditor contended that the default occurred, there was no pre-existing dispute, and the

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## Facts

The Corporate Debtor, Amrit Polychem Private Limited, approached JT Corporation (Insured) for the supply of certain goods. JT Corporation supplied and delivered the goods to the Corporate Debtor in India. The Corporate Debtor failed to make payment for the outstanding sum. The Corporate Debtor admitted its liability to JT Corporation via email dated September 26, 2017. The transaction was insured by Korea Trade Insurance Corporation (K-Sure), the Applicant. The Applicant reimbursed JT Corporation for the loss and was assigned the rights to recover the outstanding amount via a Letter of Assignment dated December 20, 2017. Despite assurances, the Corporate Debtor failed to make further payments. The Applicant issued a demand notice dated October 3, 2019, under Section 8

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## Issues and analysis

### Issue 1: Whether an admitted debt arising from a transaction can be said to be in dispute if the Corporate …

**Ratio:** A petition under Section 9 does not lie

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**Reasoning:** The court reasoned that the email communication between the parties indicated the

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**Interpretation:** The existence of a pre-existing dispute, even if related to a separate

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**Application:** The court applied the ratio to the facts by finding that the Corporate Debtor's

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** KOREA TRADE…
- **Respondents:** Amrit Polychem…

## Timeline

- **2017-01-02 — Offer for TOLUENE…**: JT Corporation offered 40 Mts of TOLUENE DIISOCYANATE 80/20 to Amrit Polychem Private…
- **2017-04-21 — Proforma Invo…**: Proforma Invoice No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(20) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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