# In the matter of Elhard Marketing Limited C.P (IB) No. 511-KB-2020

> NCLT judgment dated 2022-09-19. Citation: TCN-2022-NCLT-01020. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLT-01020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/elhard-marketing-limited-cp-ib-no-511-kb-2020-18434e17

## Summary

### Background

The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by KCO Aluminium LLP (Operational Creditor) against Elhard Marketing Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default amount of Rs. 37,06,940/-. The Corporate Debtor contested the application, asserting a pre-existing dispute and lack of contractual obligation.

## Facts

KCO Aluminium LLP (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Elhard Marketing Limited (Corporate Debtor) for a default of Rs. 37,06,940/-. The Operational Creditor claimed to have supplied Aluminum Cables to the Corporate Debtor based on an invoice dated 23 May, 2018. The Corporate Debtor argued that it had a business relationship with Crystal Cable Industries Limited (CCIL) and that the Operational Creditor acted as a dealer/financer for CCIL. The Corporate Debtor presented letters to CCIL complaining about the quality of materials supplied and stating that it would not be responsible for payments related to substandard goods. The Corporate Debtor also claimed that the Operational Creditor fabricated a

…

## Issues and analysis

### Issue 1: Whether there is any pre-existing dispute between the …

**Ratio:** The existence of a pre-existing dispute, meaning a dispute that existed before the

…

**Reasoning:** The court relied on Innoventive Industries Ltd. v. ICICI Bank and Anr. and Mobilox

…

**Interpretation:** The interpretation of 'dispute' under the IBC is broad and includes any

…

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

…

## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** KCO Alumini…
- **Respondents:** Elhard Marketing…

## Timeline

- **2018-05-23 — Invoice…**: The Operational Creditor raised an…
- **2018-07-23 — Date of D…**: The date of default is stated to be…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/elhard-marketing-limited-cp-ib-no-511-kb-2020-18434e17