# In the matter of BTM Exports Limited

> NCLT judgment dated 2023-09-14. Citation: TCN-2023-NCLT-01617. M/s. Drive India Enterprise Solutions Limited filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 14 Sept 2023
- **Citation:** TCN-2023-NCLT-01617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/btm-exports-limited-5af9aa71

## Summary

### Background

M/s. Drive India Enterprise Solutions Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. BTM Exports Limited, alleging a default of Rs.7,77,78,667/-. The Operational Creditor and Corporate Debtor had a Master Agreement where the Operational Creditor was appointed as the 'National Distributor' for telecommunication devices. The Operational Creditor was to open Letters of Credit (LCs) for suppliers identified by the Corporate Debtor. The Corporate Debtor was responsible for the sale and collection of proceeds. The Master Agreement was amended in 2017, stating the Corporate Debtor would bear statutory claims. The Operational Creditor provided services until

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## Facts

M/s. Drive India Enterprise Solutions Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. BTM Exports Limited (Corporate Debtor), alleging a default of Rs.7,77,78,667/-, later revised to Rs. 3,22,84,414/-. The basis for the claim was a Master Agreement where the Operational Creditor was appointed as the 'National Distributor' for telecommunication devices by the Corporate Debtor. The Operational Creditor was to open Letters of Credit (LCs) for suppliers identified by the Corporate Debtor. The Corporate Debtor was responsible for the sale and collection of proceeds. The Master Agreement was amended in 2017, stating the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The application under Section 9 of the IBC is not maintainable if there is a pre-existing

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**Reasoning:** The NCLT found that there was a dispute regarding the debt due to the Corporate Debtor's

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**Interpretation:** Section 9 of the IBC requires the Adjudicating Authority to reject the

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**Application:** The NCLT applied the ratio to the facts of the case and found that a genuine

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** M/s. DRIVE INDIA…
- **Respondents:** M/s. BTM Exports…

## Timeline

- **2016-02-05 — Master Agr…**: Operational Creditor and Corporate…
- **2017-04-25 — Amendment to Master…**: The Master Agreement was amended by…

## 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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